PayPal User Agreement (UK)

Read our summary of PayPal's User Agreement (UK).


  • PayPal UK Ltd is an authorized electronic money institution, providing a level of trust and security.
  • You must be at least 18 years old to use PayPal services.
  • The agreement applies to UK, Guernsey, Isle of Man, and Jersey residents.
  • By using PayPal, you agree to comply with all terms and conditions listed.
  • PayPal can revise the user agreement and documents without prior notice, although they will notify users of significant changes.
  • Changes to the agreement may be due to legal, product, service, security, or other reasons.
  • You can close your PayPal account if you disagree with changes to the terms.
  • PayPal provides various financial services, including online payments and money transfers.
  • Legally required disclosures will be made available on PayPal's website or sent to you.
  • PayPal may place holds, limitations, or reserves on accounts to protect against risks.
  • You are responsible for any fees, fines, or penalties incurred due to your actions.
  • PayPal offers Buyer and Seller Protection programs under certain conditions.
  • You may be subject to currency conversion fees for withdrawals or payments in different currencies.
  • PayPal may delay a withdrawal if there is a risk of reversal or liability.
  • You may not use PayPal services for unauthorized or illegal activities.
  • PayPal can take action against your account if you engage in restricted activities.
  • PayPal may communicate with you through various channels, including email and postal mail.
  • PayPal is not liable for certain types of damages or losses, such as indirect or unforeseen ones.
  • PayPal's services are provided "as-is" without any warranties.
  • You may be charged an inactivity fee if your account is inactive for 12 consecutive months.
  • PayPal may use automated technologies to assess your website for compliance.
  • You grant PayPal a license to use your content for improving and promoting their services.
  • The user agreement is governed by the laws of England and Wales.
  • Disputes with PayPal can be referred to the UK Financial Ombudsman Service.
  • Corporate customers have fewer protections under the Payment Services Regulations.

Things to watch out for

  • Be aware of potential account limitations, holds, or reserves that PayPal can enforce.
  • Understand that PayPal can revise terms without prior notice, but significant changes will be communicated.
  • PayPal's Buyer and Seller Protection programs have specific eligibility requirements; familiarize yourself with them.
  • PayPal is not liable for indirect losses or damages, and services are provided without warranties.
  • Corporate customers have different rights and obligations compared to consumers.

AI recommendations

When using PayPal, it's crucial to keep your account in good standing by avoiding restricted activities and ensuring your information is current. Be mindful of changes to the user agreement and understand the implications of holds, limitations, and reserves on your account. For business users, especially those classified as corporate customers, be aware of the specific terms that apply to you, as they differ from consumer protections. Always review communications from PayPal regarding policy updates or account changes.


What happens if PayPal places a hold, limitation, or reserve on my account?

If PayPal places a hold, limitation, or reserve, it means that some or all of the funds in your account may be temporarily unavailable for withdrawal to protect against risks or to comply with regulatory requirements. You'll need to resolve any issues with your account before these restrictions can be lifted.

Can I cancel my PayPal account if I disagree with changes to the user agreement?

Yes, if you do not agree with changes to the user agreement, you have the option to close your PayPal account. However, ensure that you withdraw any remaining balance before closing your account.

What protections do I have as a buyer or seller using PayPal?

PayPal offers Buyer and Seller Protection programs that may provide refunds for transactions that meet certain criteria, such as unauthorized transactions or items not received as described. However, these programs have specific eligibility requirements, so review them carefully.

(Last updated: 17th December, 2023)

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