User Agreement Explanation

Last updated on 27 August 2026

About this Document

This document provides explanations about the PayPal account service you are about to open. It helps you understand what you are signing up for, what the service does, what it costs, what your rights and obligations are, what can happen if things go wrong, and what other services are available alongside the account. Please read it carefully before accepting the User Agreement.

These explanations are provided free of charge and must be read alongside the full PayPal User Agreement. If anything is unclear, please check the User Agreement or contact PayPal customer service before proceeding.

This document is provided for information and explanatory purposes only and does not form part of the User Agreement. For full details, please review the User Agreement. In the event of any discrepancy between this document and the User Agreement, including due to translation, the User Agreement shall prevail.

1. Who You Are Contracting With

Service provider	PayPal (Europe) S.à r.l. et Cie, S.C.A.
Registered address	22–24 Boulevard Royal, L-2449 Luxembourg
Legal form	Limited partnership (société en commandite par actions)
Regulatory status	Licensed credit institution supervised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg (under the register no. B00000351).
Contract language	English (the English-language version is contractually binding for Norwegian residents).

2. How the Contract Is Concluded and Accessed

You enter into the User Agreement by completing PayPal’s online registration process and clicking to accept the terms. The contract is concluded at the moment PayPal confirms your registration. You will receive a confirmation by email.

You can access the current User Agreement and all related documents at any time via the PayPal Legal Hub (link available in the footer of any PayPal webpage). PayPal will communicate with you by email and in-account message centre— these constitute formal notice under the contract. You are responsible for keeping your contact details up to date.

3. What the PayPal Account Is

A PayPal account is an electronic money account. It lets you store funds electronically, send and receive money, and pay for goods and services online and in person.

Opening an account is free. You are not required to hold a balance. The account has no fixed term and continues until you or PayPal close it.

Note

A PayPal account is not a bank account. Funds held in your PayPal balance are electronic money, not bank deposits, and are not covered by any national deposit guarantee scheme.

4. What You Can Do With Your Account

4.1 Sending and receiving money

Send and receive e-money to friends and family (personal payments).
Receive payments for goods and services.

4.2 Paying for purchases

Pay at online checkouts that accept PayPal.
Pay in stores using the PayPal app where accepted.
Set up recurring payments or subscriptions with merchants.

4.3 Managing funds

Link a bank account or debit/credit card to fund payments and withdraw your balance.
Hold balances in multiple currencies.
Withdraw funds to your linked bank account - fees may apply for certain withdrawals.

5. Fees - What These Services Cost You

Many everyday uses of PayPal are free of charge. However, fees may apply depending on the product, payment method, or currency involved. Please check the current Fees page for the applicable prices before you proceed.

6. How Payments Are Funded

When you make a payment, the e-money amount can be funded by different funding sources. If you have made a special arrangement or have a preferred funding source, this will be debited. As a default, PayPal will debit first available PayPal balance, then debit a linked bank account and then charge a linked credit card. You can change your preferences in the PayPal account.

7. Buyer Protection

If you pay for goods or services using PayPal as a Goods and Services payment, you may be eligible for PayPal Buyer Protection if an item never arrives (Item Not Received) or is significantly different from how it was described (Significantly Not As Described). You must open a dispute within 180 days of the payment date.

Important

Friends and Family payments are NOT covered by Buyer Protection. Do not use Friends and Family payments to pay for goods and services — you will have no recourse through PayPal if something goes wrong.

8. Your Obligations

8.1 Keeping your account secure

Keep your login details, password, and security codes strictly confidential.
Never share your account with anyone else.
Tell PayPal immediately if you suspect unauthorised access to your account.

8.2 Restricted activities

You must not use your account for illegal activities, fraudulent transactions, or anything violating PayPal’s Acceptable Use Policy. Violations may result in account limitation or permanent closure.

8.3 Keeping your information up to date

You are responsible for keeping your contact details, linked bank account and/or card, and identity information accurate and current.

9. What Can Go Wrong - Potential Consequences for You

Account limitations and holds. PayPal may limit your account or place holds on funds if it suspects fraudulent activity, if you are subject to a dispute or chargeback, or for legal and compliance reasons.
Reversals and chargebacks. If a buyer disputes a payment made to you, PayPal may reverse the funds from your account - including after you have already delivered goods or services. If your balance is insufficient to cover a reversal, you will owe PayPal money.
Unauthorised transactions. If your account is accessed without your permission, report it to PayPal immediately. Prompt notification may limit or eliminate your liability.

10. Your Personal Data

PayPal collects and uses your personal data to operate your account, process payments, comply with legal obligations (including anti-money laundering requirements), detect fraud, and improve its services.

Your data may be shared with other PayPal group companies, payment network partners, fraud prevention agencies, credit reference agencies (where a credit product is applied for), and regulators. Full details are in PayPal’s Privacy Statement, available via the PayPal Legal Hub.

11. Ancillary Services Available With Your PayPal Account

A number of additional services are available alongside your PayPal account. Some are included in the User Agreement and available immediately at no extra cost. Others require you to accept a separate agreement before use.

11.1 Services included in the User Agreement — no separate agreement required

Service	Cost	How to access / notes
PayPal Buyer Protection	Free	Included in the User Agreement. Covers eligible Goods and Services payments. Full conditions in the Buyer Protection Programme.
PayPal Seller Protection	Free	Included in the User Agreement. Covers eligible transactions against unauthorised payment claims and chargebacks. Full conditions in the Seller Protection Programme.
Resolution Centre	Free	Included in the User Agreement. Available to all account holders to raise and manage transaction disputes and complaints.
PayPal app	Free	Included in the User Agreement. Available on iOS and Android. Full account management, payments, and transaction monitoring.

11.2 Optional services — free of charge but require a separate agreement

The following services are free but each requires you to accept separate terms before activation.

Service	Cost	How to access / notes
Third-party Digital Wallet	Free	Separate T&Cs required. Add a PayPal-issued card to Apple Pay, Google Pay, etc.
PayPal Digital Gifts	Free	Separate T&Cs required. Purchase and redemption of digital gift cards via PayPal.

12. Governing Law and Jurisdiction

This user agreement and the relationship between us is governed by the laws of the Grand Duchy of Luxembourg.

For consumers, Norwegian mandatory consumer protection provisions apply irrespective of the choice of the laws of the Grand Duchy of Luxembourg. As a consumer, you may bring any judicial proceedings relating to this user agreement before the competent court of your place of residence (Norway), or where PayPal is based (Luxembourg). The choice is yours.

13. Changing the Terms

PayPal may revise these terms with at least two months' notice via its website, and continued use after changes take effect constitutes acceptance, while users may object or close their account free of charge before the changes apply.

14. Closing Your Account

You can close your PayPal account at any time, free of charge, through your account settings or by contacting customer service. Withdraw any remaining balance before closing. All outstanding payments, disputes, and liabilities must be resolved. Closing your account also terminates all ancillary services linked to it.

15. Your Right of Withdrawal

As a consumer concluding this contract at a distance (online), you have the right to withdraw from the User Agreement without giving any reason within 14 days of opening your account. To exercise this right, notify PayPal (by letter, email or online) before the end of the 14-day period.

16. Disputes and Complaints

For problems with a transaction, use the PayPal Resolution Centre. For complaints about PayPal’s service, contact PayPal Customer Service. If unresolved, you may escalate to the CSSF as the external ADR body (free of charge) or seek guidance from the ECC-Net for cross-border matters.