PayPal Terms Scorecard

Grade C — Standard consumer terms (score 62/100)

PayPal forces individual arbitration and class action waivers, and reserves broad rights to suspend accounts and modify terms unilaterally.

Forced arbitration, class action waiver, and broad unilateral change rights.

Terms at a glance

Sells your data
NO
Forced arbitration
YES
Trains AI on your content
NO
Collects biometric data
NO
Shares data with government
YES
Easy to cancel
YES
Tells you before changes
YES
Deletes data on request
UNCLEAR

What the terms actually say

Agreement to Arbitrate

You and PayPal each agree that any and all disputes or claims... shall be resolved exclusively through final and binding arbitration.

You cannot sue PayPal in court; you must use private arbitration.

Prohibition of Class and Representative Actions

You and PayPal agree that each of us may bring claims against the other only on an individual basis and not as a plaintiff or class member in any purported class or representative action.

You waive your right to participate in class action lawsuits.

PayPal Suspension and Termination Rights

PayPal, in its sole discretion, reserves the right to suspend or terminate these terms and conditions... for any reason and at any time upon notice to you.

PayPal can close your account whenever they want.

Indemnification

You agree to defend, indemnify and hold PayPal harmless from any claim or demand (including reasonable legal fees) made or incurred by any third party.

You are financially responsible for PayPal's legal costs if you are involved in a dispute.

Closing Your Balance Account

You can terminate your relationship with us at any time without cost.

You are free to close your account without penalty.

Future Amendments

We will notify you of amendments to this Agreement to Arbitrate by posting the amended terms on www.paypal.com at least 30 days before the effective date of the amendments and by providing notice through email.

PayPal commits to emailing you about changes to arbitration terms.

Last reviewed 2026-07-26 under rubric v3.5.

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