On June 29, 2026 PayPal posted a notice changing how disputes between users and PayPal itself are resolved. The new terms apply to the United States PayPal User Agreement and the PayPal Balance Terms and Conditions from September 14, 2026.
What changed
- Clause
Agreement to Arbitrate→ new Dispute Resolution section- Arbitration provider
AAA→ JAMS- Addedprocedures for mass arbitrations and a revised mandatory informal dispute process
- Courtsstate and federal courts in New York County, New York, for disputes that are not arbitrated (small claims excepted)
- Scopeall disputes with PayPal, whenever they arose
- FromSeptember 14, 2026
- WhoUS PayPal account holders
Source: PayPal Policy Updates · Checked on September 27, 2026
Why it matters
These terms govern claims you bring against PayPal, such as a disagreement over a held balance or a fee, not a dispute with a seller or a friend. The notice lists no change to fees, limits or transfer timing for personal accounts.
PayPal’s notice says that using the service after the effective date means you accept the new terms. The only way it offers to decline them is to close the account before September 14, 2026.
Update: The date has passed. PayPal’s user agreement page now shows “Last updated on September 14, 2026” (PayPal User Agreement, checked on September 27, 2026).
What to do
- If you have an open complaint against PayPal itself, read the new Dispute Resolution section before you act.
- If your problem is a payment that has not arrived, start with PayPal payment pending and PayPal’s official Help Center.
This is general information, not legal or financial advice.
