Payment infrastructure

PayPal due diligence

Published · Reviewed by The Diligence Standard Team · Updated

PayPal statements can corroborate sales and cash, but holds, disputes, refunds, account limitations and entity verification can materially change available working capital.

Evidence to request

  • Activity, fees, refunds, disputes, holds and withdrawal history
  • Monthly statements reconciled to accounting and bank records
  • Account limitations, cases, reserve notices and negative balances
  • Primary owner, authorized users, recovery methods and linked banks
  • Currency conversion and cross-border fee history
  • Subscription and billing-agreement continuity

Transfer risks

  • Held or restricted cash is treated as freely available
  • Refund and dispute exposure is understated
  • A personal or seller-controlled account is embedded in operations
  • Cross-border fees distort channel profitability

Control-change sequence

  • Confirm whether the account can continue or a new buyer account is required.
  • Plan customer billing and checkout changes before seller access ends.
  • Allocate open cases, holds and pre-close transaction liabilities explicitly.

Ownership, identity, bank and business-information changes remain subject to PayPal review and the applicable user agreement.