PayPal’s User Agreement from June 25, 2016

Periodically PayPal updates its user agreement.

The one took effect June 25, 2016.  There are just a few changes of note:


We’re making a clarifying change to Section 11.5 and adding a new item that will be excluded from PayPal Seller Protection.  The new item that will not be eligible for Seller Protection is:

  • Items equivalent to cash, including gift cards.

SECTION 13.2 Eligibility Requirements

We’re updating the eligibility requirement for Purchase Protection.  The revisions to Section 13.2 will be as follows:

  • We’re deleting the requirement that user’s pay for the full amount of the item with one payment.
  • We’re adding that you must respond to PayPal’s request for documentation and other information in a timely manner.

SECTION 13.3 Ineligible Items

We’re updating the list of items that are not eligible for Purchase Protection.  The new items that will not be eligible are:

  • Payments on crowdfunding platforms
  • Anything purchased from or an amount paid to a government agency
  • Gambling, gaming and/or any other activity with an entry fee and a prize

We’re also clarifying the exclusion for items equivalent to cash to now include stored value items such as gift cards and pre-paid cards.
SECTION 13.5 Dispute Resolution

We’re updating the second bullet of Section 13.5 and are now requiring all buyers to wait at least 7 days to escalate a dispute to a claim regardless of the transaction amount.

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