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This page details and/or previews updates to PayPal users of changes to the Canada PayPal User Agreement or other online agreements, policies, or statements that require notice. You can also review Past Policy Updates notices. Note that additional changes could be made to previewed agreements on or before the effective dates listed, provided the applicable notice requirements are met.
Upcoming Changes
We’re making changes to certain agreements (listed below) that govern your relationship with PayPal. These changes will take place automatically on the corresponding effective date(s) shown below.
Actions Needed
Please carefully review the notices below and familiarize yourself with the upcoming changes. By continuing to use our services after the changes take effect, you agree to be bound by those changes. Otherwise, no further action is needed from you to accept such changes. However, if you would prefer to decline them, then you will need to close your PayPal account prior to the applicable effective date, as described in the user agreement.
Notices
Issued:
July 7, 2025
Amendments to the PayPal User Agreement
Effective August 25, 2025:
- We
are updating the “Holding a PayPal Balance” and “PayPal is only a payment
service provider” sections of the PayPal User Agreement. The updates reflect
our compliance with Retail Payment Activities Act requirements to
safeguard certain end-user funds as of September 8, 2025.
Review the updated PayPal User Agreement
Amendments to the PayPal
Online Payment Services Agreement
Effective August 25, 2025:
- We
are changing this agreement to update the terms for Chargeback Protection Tools
to include a Loss Cap, outline chargeback coverage for ticket(s) for an event that
will occur at a future date and clarify criteria for merchant enrollment to
Chargeback Protection Tools. We are also adding a Termination/Suspension and
Cancellation clause for the Chargeback Protection Tool.
- We are adding a new product variation called
“Effortless Chargeback Protection Tool” and updating our Merchant fee page to
introduce new fees relating to the Effortless Chargeback Protection Tool.
Review the updated PayPal Online Payment Services Agreement
Review the updated Merchant Fees page
Amendments to the PayPal User Agreement – Merchant Fees page
Effective October 9, 2025:
- The fees PayPal business accounts pay for receiving transactions are being updated for certain Payment Types, as follows:
- Coming soon: PayPal Pay Later options. PayPal business accounts, when acting as sellers, will be charged a standard domestic rate of 4.90% plus a fixed fee per transaction when a buyer uses a PayPal Pay Later option to fund their purchase, or international transactions (subject to additional international fees) or when the purchase occurs through PayPal’s invoicing service.
- If desired, PayPal business accounts can opt out of PayPal Pay Later option availability by logging in to their account with PayPal and going to the Pay Later section of their Account Settings. If a PayPal business account holder chooses to opt out in this manner, PayPal Pay Later options will not be available to that account holder’s buyers at PayPal Checkout.
- More information will be available at www.paypal.ca when Pay in 4 becomes available to Canadian consumers.
Review the updated Merchant Fees Page
General Pay Later information:
- Pay Later options will include Pay in 4 is an interest-free instalment product that lets consumers split their purchase into 4 payments, with the first payment due at the time of purchase and 3 subsequent repayments made every 2 weeks thereafter. When it becomes available to Canadian consumers, the Pay in 4 option will be displayed in PayPal checkout if it is available. For transactions not in CAD, PayPal will automatically convert the transaction amount to CAD. Not every Canadian consumer will be eligible to apply and not every application will be approved.
- Pay Later Pay in 4 eligibility will vary by merchant and individual shopping experience and will be displayed in PayPal Checkout if it is available for the specific merchant as well as the transaction amount and type. Not all goods and services are eligible. If for some reason the items in the cart are not eligible for Pay in 4, the offer will not be available. Merchants are paid in full once they capture the Pay in 4 transactions so there is no additional risk to the merchant if the consumer doesn’t pay or misses a payment. Pay in 4 transactions are eligible for Seller Protection.