User Agreement

MINOR

DATED 2026-09-01 · VERSION 20260902_rev01 · FIRST CAPTURED VERSION

What changed, in plain language

PayPal added a new section explaining how business accounts can send payments for goods or services, including to people who don't have a PayPal account. Those payments go through PayPal's separate "Bill Pay for Business Accounts" service, and the business sender pays those fees. Nothing was removed, and personal-account users are not affected.

Changes that may affect you

Business senders can now be charged fees they didn't pay beforeMINOR

BILLING & RENEWAL

Normally when you send a goods-and-services payment, the person receiving the money pays the fee. Under this new section, if a business sends money to someone without a PayPal account, the business sending the money pays the fee instead. The exact amount isn't in the agreement — it points to a separate fees page that PayPal can change.

“In that case, you will pay the applicable”

What you can do — If you use a PayPal business account, check the Bill Pay for Business Accounts fees on PayPal's business fees page before sending money to someone who doesn't have a PayPal account.

A separate set of terms now applies to some business paymentsMINOR

OTHER

Payments to people without PayPal accounts are governed by PayPal's separate "Bill Pay for Business Accounts" agreement. That means rules you haven't read in this document — such as how disputes and reversals work for those payments — can apply to you.

“the payment will be processed as a [Bill Pay for Business Accounts](https://www.paypal.com/us/legalhub/paypal/bill-pay-business) transaction.”

What you can do — Read the Bill Pay for Business Accounts agreement at paypal.com/us/legalhub/paypal/bill-pay-business before using this feature.

Changelog

+ ADDEDNew section on business accounts sending payments for goods or services
PayPal added a section describing that business accounts can use Send Money to pay for goods or services, and that the rules and fees are different depending on whether the person getting paid has a PayPal account.
Business accounts may use the Send Money feature to send payments for goods or services to recipients with or without PayPal accounts. Different terms, conditions, and fees apply depending on whether the recipient has a PayPal account.
+ ADDEDRecipient pays the fee when they have a PayPal account
If a business sends a goods-and-services payment to someone who has a PayPal account, the person receiving the money pays the normal commercial transaction fee.
If you send money from your PayPal business account using the Send Money for Goods and Services feature to a recipient with a PayPal account, the recipient will pay the fees applicable to
+ ADDEDBusiness sender pays Bill Pay fees when the recipient has no PayPal account
If a business pays someone who does not have a PayPal account, the payment is handled as a "Bill Pay for Business Accounts" transaction under a separate agreement, and the business sending the money pays those fees instead.
the payment will be processed as a [Bill Pay for Business Accounts](https://www.paypal.com/us/legalhub/paypal/bill-pay-business) transaction. In that case, you will pay the applicable
± CHANGEDUpdated "last updated" date
The date at the top of the agreement changed from June 29, 2026 to September 1, 2026.
Last updated on June 29, 2026
Last updated on September 1, 2026

Full text changes

COLOUR MARKS THE SEVERITY OF A FLAGGED CLAUSE · + AND − MARK ADDED AND REMOVED

 PAYPAL USER AGREEMENT
+Last updated on June 29, 2026
+Last updated on September 1, 2026
 ## About Your Account
 ### Welcome to PayPal!
 This user agreement is a contract between you and PayPal, Inc. governing your use of your PayPal account and the PayPal services. It applies to U.S. PayPal accounts only. If you are an individual, you must be a resident of the United States or one of its territories and at least 18 years old, or the age of majority in your state of residence to open a U.S. PayPal account and use the PayPal services. If you are a business, the business must be organized in, operating in, or a resident of, the United States or one of its territories to open a U.S. PayPal account and use the PayPal services.
 The fees applicable to sending personal transactions to an eligible PayPal account can be found on our [**Consumer Fees page**](https://www.paypal.com/webapps/mpp/paypal-fees) and will be disclosed to you in advance each time you initiate sending a personal transaction to a friend or family member. If you convert money in your Balance Account balance or in your business account balance from one currency to another before sending money, PayPal's transaction exchange rate (including our [**currency conversion spread**](https://www.paypal.com/webapps/mpp/paypal-fees)) will be used. If you use your credit card as the payment method when sending money, you may also be charged a cash-advance fee by your card issuer.
 If you send money to a friend's or family member's eligible PayPal account from a third party (non-PayPal) website or by using a third party's product or service, then the third party will determine if the sender or recipient pays the fee. This will be disclosed to you by the third party before the payment is initiated.
 You can also use the Send Money feature in your PayPal account to pay another PayPal account for goods or services. You will not be charged any transaction fee for sending money to purchase goods or services as long as you send the money as a commercial transaction (often referred to as using the "Send Money for Goods and Services" feature in your PayPal account). In that case, the seller will pay a fee. You must not send money as a personal transaction (often referred to as using the "Send Money to a Friend or Family Member" feature in your PayPal account) when you are paying for goods or services. Note that the "Send Money to a Friend or Family Member" feature may not be available when sending money to a business account as such accounts may not be eligible to receive personal transactions.
+## Payments for Goods or Services Sent from Business Account
+Business accounts may use the Send Money feature to send payments for goods or services to recipients with or without PayPal accounts. Different terms, conditions, and fees apply depending on whether the recipient has a PayPal account.
+If you send money from your PayPal business account using the Send Money for Goods and Services feature to a recipient with a PayPal account, the recipient will pay the fees applicable to [commercial transactions](https://www.paypal.com/us/business/paypal-business-fees).
+If you send money for goods and services from your PayPal business account using the Send Money feature to a recipient without a PayPal account, the payment will be processed as a [Bill Pay for Business Accounts](https://www.paypal.com/us/legalhub/paypal/bill-pay-business) transaction. In that case, you will pay the applicable [Bill Pay for Business Accounts fees](https://www.paypal.com/us/business/paypal-business-fees).
 ## Buying Something From, Donating to, or Returning Something to, a Seller Who Accepts PayPal
 ### **How to purchase something or make a donation**
 You can purchase something from a seller who accepts PayPal or make a donation, in any currency that the recipient accepts and that PayPal supports using any [**payment method**]() linked to your PayPal account. This includes, for example: