PayPal is updating the PayPal Account User Agreement and the Electronic Communications Delivery Policy to comply with new regulations issued by the Consumer Financial Protection Bureau.
These changes will go into effect on March 29, 2019 and apply to US PayPal customers.
PayPal users do not have to do anything to agree to the changes. Otherwise, if a user does not agree to the changes to the new agreement, they must close their account before March 29, 2019.
The most important change is that PayPal will now require US consumers to have a separate PayPal cash balance account to hold balances in their account.
As long as the account holder’s identity is already verified, much of the process will be automatic. Here are the details about this new separate account and the process which PayPal will use to set up these accounts.
Personal PayPal Account Changes
Because of a new regulation issued by the Consumer Financial Protection Bureau in Washington, D.C. coming into effect on April 1, 2019, PayPal is making changes that will affect consumers who want to hold and use a balance with PayPal.
PayPal users who want to hold and use balance will need a balance account which will be linked to their current PayPal account.
PayPal will offer two balance accounts: PayPal Cash and PayPal Cash Plus. Information about both types of balance accounts can be found in the PayPal Cash and PayPal Cash Plus Terms and Conditions (see document below).
For PayPal users with an existing personal PayPal account and where PayPal has already verified their identity, the company will establish and automatically link a PayPal Cash Plus account to their current PayPal account.
Information about your PayPal Cash Plus account, including the balance amount, will be easily available using the existing PayPal login.
For all other consumer PayPal account holders, if they want to hold and use a balance, besides verifying their identity with PayPal, they will need set up a balance account which will be linked to their current PayPal account.
New PayPal Cash and PayPal Cash Terms and Conditions
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