PayPal Acceptable Use Policy

Legal Rights & Agreement Rules · Context

Policy states it was last updated October 29, 2022

This Acceptable Use Policy says it was last updated on October 29, 2022. The supplied text gives no separate effective date, and no earlier or later version is part of this analysis.

Supporting quotations

Last updated on October 29, 2022

Not stated here

• When changes take effect and whether a newer version exists are not stated in the supplied text.

Legal Rights & Agreement Rules · Restriction or exception

You are independently responsible for following applicable law and this policy

PayPal says you are independently responsible for complying with all applicable laws in everything you do with PayPal's services, whatever your purpose. On top of that you must follow this Acceptable Use Policy. Breaking this policy counts as breaking the PayPal User Agreement.

Supporting quotations

You are independently responsible for complying with all applicable laws in all of your actions related to your use of PayPal's services, regardless of the purpose of the use.

Violation of this Acceptable Use Policy constitutes a violation of the PayPal User Agreement.

Qualifications & exceptions

• The legal duty covers all of your actions related to your use of PayPal's services, regardless of the purpose of the use.
• The policy is additional to, not a substitute for, the legal duty.

Not stated here

• What happens when the PayPal User Agreement is violated is not stated in this policy; that agreement is a separate document that is not part of this source.

Legal Rights & Agreement Rules · Restriction or exception

Activities that violate any law are prohibited

You may not use the PayPal service for activities that violate any law, statute, ordinance or regulation. This sits in the list of prohibited activities, so it is part of the policy itself, in addition to the general legal responsibility in the opening paragraph.

Supporting quotations

You may not use the PayPal service for activities that:

violate any law, statute, ordinance or regulation.

Not stated here

• The policy does not say which jurisdiction's law applies.

Legal Rights & Agreement Rules · Restriction or exception

Transactions involving drugs, cigarettes, firearms and weapons are prohibited

You may not use the PayPal service for activities that relate to transactions involving: narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety; drug paraphernalia; cigarettes; ammunition, firearms, or certain firearm parts or accessories; or certain weapons or knives regulated under applicable law.

Supporting quotations

You may not use the PayPal service for activities that:

(a) narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety, (b) drug paraphernalia, (c) cigarettes,

(j) ammunition, firearms, or certain firearm parts or accessories, or (k) certain weapons or knives regulated under applicable law.

Qualifications & exceptions

• 'Certain' limits the controlled substances, firearm parts or accessories, and weapons or knives; the policy does not say which are in or out.
• Weapons and knives are covered only to the extent they are regulated under applicable law.
• The ban names cigarettes; non-cigarette tobacco products, e-cigarettes and cigars appear instead on the pre-approval list in the next section.

Not stated here

• Which controlled substances, firearm parts or weapons count as 'certain' is not defined in the supplied text.

Cross-references

• contrast (model-proposed): Selling alcohol and non-cigarette tobacco products needs pre-approval — contrast: Cigarettes are banned outright in the Prohibited Activities list, while non-cigarette tobacco products, e-cigarettes and cigars are listed as approvable with pre-approval.
• contrast (model-proposed): Prescription items, telemedicine and medical items or services need pre-approval — contrast: Narcotics, steroids and certain controlled substances are banned, while products requiring a prescription are a pre-approval category; the policy does not say how the two interact.

Content & IP Rights · Restriction or exception

Transactions involving stolen, hateful, obscene, infringing or sexual items are prohibited

You may not use the PayPal service for activities that relate to transactions involving: items that encourage, promote, facilitate or instruct others to engage in illegal activity; stolen goods, including digital and virtual goods; the promotion of hate, violence, racial or other discriminatory intolerance, or the financial exploitation of a crime; items considered obscene; items that infringe or violate copyright, trademark, rights of publicity or privacy or any other proprietary right under the laws of any jurisdiction; and certain sexually oriented materials or services.

Supporting quotations

You may not use the PayPal service for activities that:

(d) items that encourage, promote, facilitate or instruct others to engage in illegal activity, (e) stolen goods including digital and virtual goods, (f) the promotion of hate, violence, racial or other forms of intolerance that is discriminatory or the financial exploitation of a crime, (g) items that are considered obscene, (h) items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction, (i) certain sexually oriented materials or services,

Qualifications & exceptions

• Only 'certain' sexually oriented materials or services are named; the policy does not say which.
• Infringement is measured under the laws of any jurisdiction, not only one.
• The approval section separately lists adult content delivered digitally as needing pre-approval.

Not stated here

• What counts as obscene, or as a sexually oriented item within 'certain', is not defined in the supplied text.

Cross-references

• contrast (model-proposed): Adult content delivered digitally needs pre-approval — contrast: Certain sexually oriented materials or services are banned, while adult content delivered digitally is a pre-approval category; the policy does not say where the line between them falls.

Legal Rights & Agreement Rules · Restriction or exception

Transactions involving pyramid schemes, third-party personal data, bribery and similar are prohibited

You may not use the PayPal service for activities that relate to transactions that show third parties' personal information in violation of applicable law; support pyramid or ponzi schemes, matrix programs, other 'get rich quick' schemes or certain multi-level marketing programs; are for the sale of certain items before the seller has control or possession of the item; or involve offering or receiving payments for bribery or corruption.

Supporting quotations

You may not use the PayPal service for activities that:

(a) show the personal information of third parties in violation of applicable law, (b) support pyramid or ponzi schemes, matrix programs, other "get rich quick" schemes or certain multi-level marketing programs,

(d) are for the sale of certain items before the seller has control or possession of the item,

(i) involve offering or receiving payments for the purpose of bribery or corruption.

Qualifications & exceptions

• Showing third parties' personal information is banned only when it is in violation of applicable law.
• Only 'certain' multi-level marketing programs and 'certain' items sold before the seller has control or possession are banned; the policy does not say which.

Not stated here

• Which multi-level marketing programs and which pre-possession sales are prohibited is not defined in the supplied text.

Cross-references

• contrast (model-proposed): Multilevel marketing, direct selling and marketplaces need pre-approval — contrast: Certain multi-level marketing programs are banned, while multi-level marketing and direct sales organizations are a pre-approval category; the policy does not say which programs fall on which side.

Charges & Financial Obligations · Restriction or exception

Merchant payment processing, money orders, currency exchange and some credit or insurance activity are prohibited

You may not use the PayPal service for activities that relate to transactions that are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking, or transactions to finance or refinance debts funded by a credit card; are by payment processors to collect payments on behalf of merchants; are associated with the sale of traveler's checks or money orders; involve currency exchanges or check cashing businesses; or involve certain credit repair, debt settlement services, credit transactions or insurance activities.

Supporting quotations

You may not use the PayPal service for activities that:

(c) are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card,

(e) are by payment processors to collect payments on behalf of merchants, (f) are associated with the sale of traveler's checks or money orders, (g) involve currency exchanges or check cashing businesses, (h) involve certain credit repair, debt settlement services, credit transactions or insurance activities,

Qualifications & exceptions

• Only 'certain' credit repair, debt settlement, credit transactions and insurance activities are named; the policy does not say which.
• The approval section separately lists payment facilitator services (money service businesses, electronic money institutions) as needing pre-approval rather than listing them here.

Not stated here

• Which credit and insurance activities are covered by 'certain' is not defined in the supplied text.

Cross-references

• contrast (model-proposed): Payment facilitators, investments and digital value or crypto need pre-approval — contrast: Payment processors collecting payments for merchants are banned, while payment facilitator services are a pre-approval category; the policy does not say how the two differ.

Legal Rights & Agreement Rules · Restriction or exception

Products or services flagged by government agencies as likely fraudulent are prohibited

You may not use the PayPal service for activities that involve selling products or services that government agencies have identified as having a high likelihood of being fraudulent.

Supporting quotations

You may not use the PayPal service for activities that:

involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent.

Qualifications & exceptions

• The trigger is identification by government agencies, not PayPal's own assessment.

Not stated here

• Which agencies count, and how a user can know a product has been identified, is not stated.

Account & Service Control · Restriction or exception

Restricted activities cannot be run without the required pre-approval

You may not use the PayPal service for activities that relate to transactions involving any activity that requires pre-approval when you have not obtained that approval. The chart in the next section (Activities Requiring Approval) lists categories where PayPal requires pre-approval, and describes its item lists as not exhaustive.

Supporting quotations

You may not use the PayPal service for activities that:

relate to transactions involving any activity that requires pre-approval without having obtained said approval.

Qualifications & exceptions

• The ban applies only where pre-approval is required and has not been obtained; getting approval removes it for that activity.

Not stated here

• How approval is obtained, the criteria, and whether it can be withdrawn are not described in this policy.

Cross-references

• related (model-proposed): PayPal requires pre-approval to accept payments for listed items and services — references: The ban on activities lacking required pre-approval points to the pre-approval requirement stated in the Activities Requiring Approval chart.

Account & Service Control · Restriction or exception

PayPal requires pre-approval to accept payments for listed items and services

PayPal requires pre-approval before you can accept payments for certain items and services. The policy lists them in a chart of 18 numbered categories. The chart's item column is described as not intended to be an exhaustive list, so a category can reach items beyond the examples it names.

Supporting quotations

PayPal requires pre-approval to accept payments for certain services as detailed in the chart below.

PayPal requires pre-approval to accept payments for certain items and services as detailed below.

Item or Service Requiring Pre-Approval (not intended to be an exhaustive list)

Qualifications & exceptions

• The introduction speaks of 'certain services' and the chart row of 'certain items and services'; only the chart categories are named.
• The item column is not intended to be an exhaustive list, so categories are examples, not a closed set.
• Doing a restricted activity without the approval is itself prohibited in the Prohibited Activities list.

Not stated here

• How pre-approval is requested, the criteria PayPal applies, how long it lasts and whether it can be withdrawn are not described in the supplied text.

Account & Service Control · Procedure

Questions go to the Help Center; pre-approval or Business account questions go to Sales

The chart's Contact Information column says that for general questions you should refer to PayPal's Help Center. If you have questions about obtaining a pre-approval or opening a new PayPal Business account that offers services requiring pre-approval, you should contact PayPal's Sales team.

Supporting quotations

For general questions, please refer to our Help Center.

If you have questions about obtaining a pre-approval or opening a new PayPal Business account that offers services requiring pre-approval, please contact our [Sales team](https://www.paypal.com/us/business/contact-sales?locale.x=en_US).

Qualifications & exceptions

• This contact text sits in the first row of the chart (Transportation); the supplied text does not say whether it is meant for the other categories as well.

Not stated here

• The Help Center and Sales team pages are linked but not supplied, so what they say is unknown.

Account & Service Control · Restriction or exception

Airlines and charter operators need pre-approval

Pre-approval is required for the Transportation category, which covers airlines and scheduled or non-scheduled charters, jets and air taxi operators.

Supporting quotations

Transportation

Airlines and scheduled or non-scheduled charters/jets/air taxi operators.

Not stated here

• Whether other transport services such as ground or sea transport fall in the category is not stated.

Account & Service Control · Restriction or exception

Charities and non-profits collecting donations need pre-approval

Pre-approval is required to collect donations as a charity or non-profit organization.

Supporting quotations

Charities / Non-Profit

Collecting donations as a charity or non-profit organization.

Not stated here

• The text does not say what approval involves for charities or non-profits.

Account & Service Control · Restriction or exception

Dealers in jewels, precious metals and stones need pre-approval

Pre-approval is required for the High Value Items category, described as operating as a dealer in jewels, precious metals and stones.

Supporting quotations

High Value Items

Operating as a dealer in jewels, precious metals and stones.

Not stated here

• The chart names dealers; it does not say whether a one-off seller of such items is covered.

Charges & Financial Obligations · Restriction or exception

Payment facilitators, investments and digital value or crypto need pre-approval

Pre-approval is required for: payment services that would fall under the definition of a money service business or electronic money institution, including selling stored value cards and escrow services; buying, selling or brokering stocks, bonds, securities, options, commodities, contracts for difference/forex, mutual funds or an investment interest in any entity or property; and anything that is a digital representation of value that can be traded, transferred or used for payment, including crypto currencies, virtual in-game currencies and non-fungible tokens. Separately, the Prohibited Activities list bans transactions by payment processors collecting payments on behalf of merchants.

Supporting quotations

Payment Facilitator

Providing payment services which would fall under the definition of a money service business or an electronic money institution. Services would also include the sale of stored value cards and escrow services.

Investments

Buying, selling, or brokering stocks, bonds, securities, options, figures, commodities, contracts for difference/forex, mutual funds or an investment interest in any entity or property.

Cryptocurrency

Any digital representation of value that can be digitally traded, transferred, or used for payment, including, but not limited to, crypto currencies, virtual in-game currencies, or non-fungible tokens.

(e) are by payment processors to collect payments on behalf of merchants,

Qualifications & exceptions

• The payment facilitator entry depends on the legal definitions of a money service business or electronic money institution, which the policy does not supply.
• Virtual in-game currencies and non-fungible tokens are named inside the cryptocurrency category.
• The prohibition on payment processors collecting for merchants is a separate ban; this entry lists payment facilitator services as approvable.

Not stated here

• The policy does not explain how the payment facilitator category relates to the ban on payment processors collecting for merchants, or which activities are approvable.
• The meaning of 'figures' in the investments entry is unclear in the supplied text.

Account & Service Control · Restriction or exception

Gambling, gaming, prize draws and contests need pre-approval

Pre-approval is required for activities involving gambling, gaming or any other activity with an entry fee and a prize. The entry names property or real estate prizes, casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes. The entry ends with a condition: it applies if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.

Supporting quotations

Gambling, Gaming, Prize Draws and Contests

Activities involving gambling, gaming and/or any other activity with an entry fee and a prize, including, but not limited to property/real estate prizes, casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes, if the operator and customers are located exclusively in jurisdictions where such activities are permitted by law.

Qualifications & exceptions

• The named examples are 'including, but not limited to', so they are not a closed list.
• Games of skill are included whether or not the law defines them as gambling.
• The entry carries a location condition: operator and customers located exclusively in jurisdictions where such activities are permitted by law.

Not stated here

• The text does not say whether the location condition limits the category or describes when approval can be given, or what applies if customers are elsewhere; the Prohibited Activities list separately bans activities that violate any law.

Account & Service Control · Restriction or exception

Prescription items, telemedicine and medical items or services need pre-approval

Pre-approval is required for: selling any product requiring a prescription or prescription dispensing services; providing medical services and consultations remotely (telemedicine); and the Medical Items or Services category, covering all items classified as medical devices and all services or treatment provided by a person or organization holding itself out as a health-care provider, including all health-care services for which government licensure is required in the provider's jurisdiction or where services are provided. The medical category includes Medical Tourism, meaning medical services provided to a patient outside that patient's home country. Separately, the Prohibited Activities list bans transactions involving narcotics, steroids and certain controlled substances.

Supporting quotations

Prescription Items

The sale of any product(s) requiring a prescription or prescription dispensing

services.

Telemedicine Services

Providing medical services and consultations in a remote fashion.

Medical Items or Services

All items classified as medical devices, and all services or treatment provided by a person or organization holding itself out as a provider of health-care services, including, but not limited to, all health-care services for which government licensure is required in the provider's jurisdiction or in the jurisdiction where services are being provided.

This category includes "Medical Tourism" involving medical services to be provided to a patient outside of that patient's home country.

(a) narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety,

Qualifications & exceptions

• The prescription entry is split over two cells and reads as 'the sale of any product(s) requiring a prescription or prescription dispensing services'.
• The medical category uses 'all' for devices and licensed health-care services, 'including, but not limited to', so it is broad.
• Prescription items are listed as a pre-approval category; the ban on narcotics, steroids and certain controlled substances is a separate entry in the Prohibited Activities list.

Not stated here

• The policy does not say how prescription sales relate to the ban on certain controlled substances, or which items count as medical devices.

Account & Service Control · Restriction or exception

Adult content delivered digitally needs pre-approval

Pre-approval is required for any adult content delivered digitally, including video on demand and web-cam activities. The same entry adds that PayPal may be restricted from processing payments in certain jurisdictions for adult DVDs, magazines and other adult themed products or services. Separately, the Prohibited Activities list bans transactions involving certain sexually oriented materials or services.

Supporting quotations

Mature Audience Content

Any adult content delivered digitally including video on demand (VOD) and web-cam activities. PayPal may be restricted from processing payments in certain jurisdictions for adult DVD's, magazines and other adult themed products or services.

(i) certain sexually oriented materials or services,

Qualifications & exceptions

• The second sentence describes a possible limit on PayPal's ability to process payments in certain jurisdictions, not a pre-approval route.
• Adult content delivered digitally is a pre-approval category; certain sexually oriented materials or services are banned elsewhere.

Not stated here

• The policy does not say which jurisdictions are meant, or which sexually oriented materials are banned and which can be approved.

Account & Service Control · Restriction or exception

Online dating, live streaming and file-sharing services need pre-approval

Pre-approval is required for: dating services that enable individuals to find and introduce themselves to new people with the goal of developing a personal or romantic relationship; activities in which people transmit video, voice or text content in a live environment with the potential of user interaction; and file sharing services, including cyberlockers and similar remote digital file sharing, where uploaded content is accessible to the public or the service pays uploaders for content.

Supporting quotations

Online Dating

Any dating services that enable individuals to find and introduce themselves to new people with the goal of developing a personal or romantic relationship.

Live Streaming/Broadcasting

Any activities in which people transmit video, voice or text content in a live environment with the potential of user interaction.

File-Sharing

Providing file sharing services including cyberlockers and similar remote digital file sharing services where uploaded content is accessible to the public or the service pays uploaders for content.

Qualifications & exceptions

• Live streaming is covered where there is potential for user interaction.
• File sharing is covered where uploaded content is publicly accessible or the service pays uploaders for content.

Not stated here

• Whether private file storage not meeting those conditions needs pre-approval is not stated.

Account & Service Control · Restriction or exception

Selling alcohol and non-cigarette tobacco products needs pre-approval

Pre-approval is required for selling alcoholic beverages, and for non-cigarette tobacco products, e-cigarettes and cigars. Separately, the Prohibited Activities list bans transactions involving cigarettes.

Supporting quotations

Alcohol

Selling alcoholic beverages.

Tobacco

Non-cigarette tobacco products, e-cigarettes, cigars

(c) cigarettes,

Qualifications & exceptions

• The tobacco entry excludes cigarettes, which the Prohibited Activities list bans outright.

Not stated here

• The entries do not state age, licence or region requirements for approval.

Account & Service Control · Restriction or exception

Multilevel marketing, direct selling and marketplaces need pre-approval

Pre-approval is required for Direct Sales Organizations and Multi-Level Marketing organizations, described as distribution and marketing models where products or services are sold through a network of independent distributors or representatives, relying on personal sales and often requiring distributors to recruit new distributors to advance or earn incentive compensation. Pre-approval is also required for marketplaces, meaning e-commerce solutions where third-party sellers can sell their products or services to customers. Separately, the Prohibited Activities list bans transactions that support pyramid or ponzi schemes, 'get rich quick' schemes or certain multi-level marketing programs.

Supporting quotations

Multilevel Marketing and Direct Selling Organizations

Direct Sales Organizations ("DSOs") and the Multi-Level Marketing ("MLMs") are distribution and marketing models in which products or services are sold via a network of independent distributors or representatives.

DSO and MLM models rely on personal sales and frequently require the independent distributors to recruit new distributors in order to advance within the organization or gain incentive compensation.

Marketplaces

A marketplace is an e-commerce solution where third-party sellers can sell their products or services to customers.

support pyramid or ponzi schemes, matrix programs, other "get rich quick" schemes or certain multi-level marketing programs

Qualifications & exceptions

• Multi-level marketing is a pre-approval category here, while 'certain' multi-level marketing programs are banned in the Prohibited Activities list.
• A marketplace is defined by third-party sellers selling to customers.

Not stated here

• The policy does not say which multi-level marketing programs are banned and which can be approved.

Legal Rights & Agreement Rules · Procedure

The Help Center has more about the policy

The policy points to PayPal's Help Center for readers who want to learn more about the Acceptable Use Policy.

Supporting quotations

To learn more about the Acceptable Use Policy, please refer to our [Help Center](https://www.paypal.com/us/webapps/helpcenter/helphub/home/?locale.x=en_US).

Not stated here

• The Help Center content is linked but not supplied, so what it adds is unknown.

Legal Rights & Agreement Rules · Procedure

PayPal encourages reporting violations and asking whether a transaction is allowed

PayPal encourages you to report violations of this Acceptable Use Policy to PayPal immediately. If you have a question about whether a type of transaction may violate the policy, or you want to file a report, you can do so through the contact link PayPal gives.

Supporting quotations

We encourage you to [report](https://www.paypal.com/us/smarthelp/contact-us?email=paypalme&locale.x=en_US) violations of this Acceptable Use Policy to PayPal immediately.

If you have a question about whether a type of transaction may violate the Acceptable Use Policy, or wish to file a report, you can do so [here](https://www.paypal.com/us/smarthelp/contact-us?email=paypalme&locale.x=en_US).

Qualifications & exceptions

• Reporting is encouraged, not stated as required.
• The same link serves both reports and questions about whether a transaction type may violate the policy.

Not stated here

• The contact page is linked but not supplied, so how PayPal handles reports or questions is unknown.
• The policy does not say what PayPal does after a report, or what happens to an account found to have violated the policy beyond counting as a violation of the PayPal User Agreement.