PayPal vs Venmo: whose terms are worse?

Disputes with PayPal will be resolved through arbitration, not in court. This means you won't be able to sue PayPal or participate in a class-action lawsuit.

Disputes with Venmo will be resolved through arbitration, not in court. You give up your right to a jury trial or class action lawsuit.

You can't join a class action lawsuit against Venmo; you must resolve disputes individually.

If you request a check from PayPal, you must cash it within 180 days or the funds will be returned to your account and you'll lose the $1.50 fee.

Venmo's fees and limits may change, so check the Fees page regularly to avoid surprises.

PayPal can change its terms at any time, and you're bound by those changes if you keep using the service. You'll get at least 21 days' notice if the changes affect personal accounts, or 5 days' notice for business accounts.

Venmo can change its terms at any time, with 21 days' notice for changes that reduce your rights or increase your responsibilities. If you don't like the changes, you must close your account before they take effect.

If PayPal's outage or other issue costs you money, the most you can get back is what you paid them last month. This limit applies even if the problem was PayPal's fault.

Venmo doesn't guarantee the safety of the money in your account, and you won't earn interest on it.

PayPal can close your account at any time, with or without notice. If this happens, you'll still be responsible for any outstanding fees or debts.

You can close your Venmo account at any time, but you must withdraw your money first. You'll still be responsible for any outstanding transactions or debts.

PayPal may ask for your tax ID number or other tax-related information to comply with tax laws. You're responsible for paying any taxes owed on your PayPal transactions.

Venmo reviews your account activity, including withdrawals, to check for suspicious or illegal activity. This may delay or block your transactions.

PayPal will keep your money separate from its own funds, so if the company goes bankrupt, your balance should be safe. However, this protection doesn't apply to cryptocurrency holdings.

Venmo says it won't use your account information for its own purposes, but the details are unclear.

PayPal may convert your money to a different currency if necessary, using its own exchange rate. You can't use PayPal for speculative trading or trying to profit from currency conversions.

Venmo can transfer its rights and obligations to another company, which may affect your account.

Venmo should only be used to transact with people you know and trust, especially for goods and services. Using Venmo for transactions with strangers may result in lost money or goods.