PayPal's New Regulations to Affect Daily Operations of Independent Websites and Cross-Border E-Commerce Businesses
AMZ123 Cross-border Newsletter2026-7-13

AMZ123 has learned that in the summer of 2026, PayPal will roll out a series of platform policy adjustments, taking effect at three key dates. These changes will directly impact the daily operations and fund dispute resolutions for independent sites and cross-border e-commerce businesses. All Chinese sellers using PayPal to collect payments must take early action to avoid losses.

From July 30, the platform will officially retire the existing seller profile feature. The official notice warns that merchants still using this feature must migrate to business profiles in advance. After the deadline, the original seller homepages will become inaccessible, and creating a new business profile may result in losing the original username, significantly affecting store exposure and customer recognition.

Starting August 1, the platform will permanently discontinue the rewards cashback benefit. Sellers with points to redeem must complete their redemptions before the cutoff date.

On September 1, the user agreement will be fully revised, removing the original arbitration clause and replacing it with new dispute resolution terms. Rules regarding business account transfers and bill payments will also be updated.

This dispute rule overhaul is substantial. The platform will mandate an informal dispute resolution process, switch the arbitration provider from AAA to JAMS, and introduce procedures for mass arbitration. It clearly states that state and county courts in New York will have exclusive jurisdiction over the vast majority of disputes. Furthermore, the new terms apply to all past disputes between the platform and sellers, regardless of when the transactions occurred.

AMZ123 Commentary

This concentrated wave of PayPal policy adjustments significantly increases risk exposure for independent site sellers. Removing arbitration and changing the court of jurisdiction will substantially raise the cost for cross-border sellers to defend their rights. It is advisable to immediately review the jurisdiction clauses of all existing disputes and centrally resolve high-risk disputes before the new rules take effect in September.

Source: AMZ123
Original link: https://www.amz123.com/kx/W1bFl8cz

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