On September 14, 2026, amendments to the US PayPal User Agreement and the PayPal Balance Terms and Conditions took effect. They replace the old Agreement to Arbitrate with a new Dispute Resolution section. PayPal issued the notice on June 29, 2026. It covers disputes between you and PayPal itself, not the buyer-seller disputes you open over a purchase.
What changed
- Section
Agreement to Arbitrate→ Dispute Resolution- Arbitration provider
AAA→ JAMS- Informal dispute processthe mandatory step before arbitration is modified
- Mass arbitrationsnew procedures added
- Court for disputes outside arbitrationstate and federal courts in New York County, New York (small claims court excepted)
- Which disputesall disputes between you and PayPal, regardless of when they arose
- FromSeptember 14, 2026
- WhoUS PayPal users, including PayPal Balance account holders
Source: PayPal Policy Updates (US) · Checked on September 27, 2026
Why it matters
If a transfer goes wrong and you cannot resolve it with PayPal’s support, these terms decide where and how you can pursue it. The new version applies retroactively to disputes that arose before September 14. PayPal’s notice says continuing to use the service means accepting the changes; the only way to decline was to close the account before the effective date, which has now passed.
The user agreement still keeps separate notification timeframes for unauthorized transactions and other electronic transfer errors. Those are the first route when money goes missing.
This is not legal advice.
What to do
- Report a problem payment to PayPal first, through the app or paypal.com, and keep the written record.
- If a payment is stuck rather than lost, start with PayPal payment pending.
- Read the updated Dispute Resolution section before you escalate a claim against PayPal.
