PayPal TOS Changed
Friday, October 23, 2026
What this means for you
If you pay for something with PayPal and your main payment method doesn't have enough money, they'll now automatically charge your backup payment method for whatever's left instead of just trying once. They've also made it clearer that if you go to court with them, you can't join together with other people in a lawsuit or have a jury decide—it'll be decided by a private arbitrator instead, which gives you fewer chances to appeal or get all the evidence you want. A couple new features got added too: business accounts can now deposit cash at stores and checks through the app, and if you use crypto through PayPal, it's technically a separate account type now.
Plain-English explanation, not legal advice.
What changed
The updated agreement expands the arbitration disclosure to include a class action waiver and jury trial waiver, introduces new business account funding features (Add Cash at Store and Cash a Check), clarifies cryptocurrency account terminology by introducing a named 'Crypto Account' entity, modifies automatic payment backup payment method language, adds a new section on business account goods/services payments, and adds new currency conversion language for balance shortfalls.
Details
- •The arbitration clause now explicitly mentions a class action waiver and jury trial waiver, and notes that arbitration provides less discovery and appellate review than court proceedings. The old version only mentioned arbitration on an individual basis.
- •The introductory language around compliance with other agreements was changed from 'you agree to comply' to 'you acknowledge and agree to comply,' adding an acknowledgment component.
- •For automatic payments, the language around backup payment method usage was modified: the new version specifies that the backup payment method is charged for the remaining amount when the primary method cannot cover the full amount (e.g., due to insufficient funds), rather than simply charging the backup if the preferred method cannot be charged at all.
- •Cryptocurrency references have been updated to introduce the term 'Crypto Account' (described as a PayPal-branded cryptocurrency account provided by PayPal Digital, Inc.) replacing general references to buying or receiving cryptocurrency with a personal PayPal Balance account. A note was added that cryptocurrency services are provided by PayPal Digital, Inc.
- •Two new funding methods for verified business accounts were added: 'Add Cash at Store' (allowing cash deposits at participating retail stores) and 'Cash a Check' (allowing check deposits via the PayPal app), each subject to transaction and time-period limits and associated fees.
- •A new subsection was added covering payments for goods or services sent from a business account using the Send Money feature, including different terms for recipients with and without PayPal accounts, with the latter being processed as 'Bill Pay for Business Accounts' transactions with applicable fees paid by the sender.
- •New language was added to the currency conversion section stating that if a PayPal balance is insufficient to cover a payment in a particular currency, PayPal may convert from another currency balance to cover the shortfall, and noting restrictions on sending payments in certain currencies.
- •The effective date of the agreement was updated from January 26, 2026 to September 14, 2026.
Disclaimer: Change summaries are generated by AI and may not capture every detail. Severity ratings reflect our assessment of potential user impact, not legal significance. Always refer to the original Terms of Service for authoritative terms.