Published policy, quoted

PayPal Prohibited & Restricted Businesses List

As of 2026-08-07, PayPal's published terms name 23 business categories as prohibited and 18 as restricted. The full list is below, grouped by status, with the exact policy language for each category. PayPal's Acceptable Use Policy, last updated October 29, 2022, splits its rules into two tiers. A short Prohibited Activities list bans certain transactions outright, while a separate Activities Requiring Approval chart names 18 categories (gambling, prescription items, cryptocurrency, and others) that merchants may only offer after obtaining PayPal's pre-approval.

Source: Acceptable Use Policy, captured 2026-08-07. Lists change, and PayPal's live page controls.

23 prohibited
18 restricted
41 categories in PayPal's published terms

The list

Every category in PayPal's published terms.

Prohibited outright

23 categories
Prohibited

Violations of law

Any business activity that breaks an applicable law or regulation cannot be run through PayPal.

Read the exact policy language
“violate any law, statute, ordinance or regulation.”
Prohibited

Narcotics, steroids and controlled substances

Sellers of narcotics, steroids, controlled substances, or products PayPal considers unsafe for consumers are banned outright.

Read the exact policy language
“narcotics, steroids, certain controlled substances or other products that present a risk to consumer safety”
Prohibited

Drug paraphernalia

Products used to consume or prepare drugs, such as pipes and bongs, cannot be sold through PayPal.

Read the exact policy language
“drug paraphernalia”
Prohibited

Cigarettes

Cigarette sales are banned outright, while other tobacco products fall under a separate pre-approval category.

Read the exact policy language
“cigarettes”
Prohibited

Items facilitating illegal activity

Products or content that help or teach people to break the law cannot be sold through PayPal.

Read the exact policy language
“items that encourage, promote, facilitate or instruct others to engage in illegal activity”
Prohibited

Stolen goods

Selling stolen property is banned, and the rule explicitly extends to digital and virtual items.

Read the exact policy language
“stolen goods including digital and virtual goods”
Prohibited

Hate, violence and intolerance

Businesses that promote hate, violence, or discrimination, or that profit from a crime, are banned.

Read the exact policy language
“the promotion of hate, violence, racial or other forms of intolerance that is discriminatory or the financial exploitation of a crime”
Prohibited

Obscene items

Items PayPal deems obscene cannot be sold, a standard the policy leaves to PayPal's judgment.

Read the exact policy language
“items that are considered obscene”
Prohibited

Copyright and trademark infringement

Counterfeit merchandise and anything else that violates someone's copyright, trademark, or similar rights is banned.

Read the exact policy language
“items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the laws of any jurisdiction”
Prohibited

Sexually oriented materials or services

Some adult materials and services are banned outright, separate from the digital adult content that PayPal handles through pre-approval.

Read the exact policy language
“certain sexually oriented materials or services”
Prohibited

Ammunition and firearms

Gun and ammo sellers, including sellers of certain parts and accessories, cannot use PayPal.

Read the exact policy language
“ammunition, firearms, or certain firearm parts or accessories”
Prohibited

Regulated weapons and knives

Weapons and knives that are regulated by law cannot be sold through PayPal.

Read the exact policy language
“certain weapons or knives regulated under applicable law”
Prohibited

Third-party personal information

Selling or exposing other people's personal data in ways that break the law is banned.

Read the exact policy language
“show the personal information of third parties in violation of applicable law”
Prohibited

Pyramid schemes and get-rich-quick programs

Pyramid and ponzi structures are banned, and the rule reaches some multi-level marketing programs as well.

Read the exact policy language
“support pyramid or ponzi schemes, matrix programs, other "get rich quick" schemes or certain multi-level marketing programs”
Prohibited

Annuities, lottery contracts and off-shore banking

A group of financial arrangements including annuity purchases, lottery contracts, lay-away plans, off-shore banking, and refinancing credit card debt is banned.

Read the exact policy language
“are associated with purchases of annuities or lottery contracts, lay-away systems, off-shore banking or transactions to finance or refinance debts funded by a credit card”
Prohibited

Sale of items before possession

Selling certain goods you do not yet control or possess, a common issue for some pre-order and drop-ship models, is banned.

Read the exact policy language
“are for the sale of certain items before the seller has control or possession of the item”
Prohibited

Payment processing on behalf of merchants

Acting as a payment processor that collects money for other merchants is banned, though a separate pre-approval path exists for licensed payment facilitators.

Read the exact policy language
“are by payment processors to collect payments on behalf of merchants”
Prohibited

Traveler's checks and money orders

Selling traveler's checks or money orders through PayPal is banned.

Read the exact policy language
“are associated with the sale of traveler's checks or money orders”
Prohibited

Currency exchange and check cashing

Currency exchange operations and check cashing businesses cannot use PayPal.

Read the exact policy language
“involve currency exchanges or check cashing businesses”
Prohibited

Credit repair, debt settlement and insurance activities

Some credit repair firms, debt settlement services, credit transactions, and insurance activities are banned, with the word certain leaving the exact line to PayPal.

Read the exact policy language
“involve certain credit repair, debt settlement services, credit transactions or insurance activities”
Prohibited

Bribery and corruption

Payments made or received as bribes or for corrupt purposes are banned.

Read the exact policy language
“involve offering or receiving payments for the purpose of bribery or corruption”
Prohibited

Government-flagged fraudulent products

If a government agency has flagged a product or service type as likely fraudulent, PayPal bans it.

Read the exact policy language
“involve the sales of products or services identified by government agencies to have a high likelihood of being fraudulent.”
Prohibited

Pre-approval activities without approval

Running any of the pre-approval categories without first getting PayPal's sign-off counts as a prohibited activity.

Read the exact policy language
“relate to transactions involving any activity that requires pre-approval without having obtained said approval.”

Restricted (conditions or pre-approval required)

18 categories
Restricted

Transportation

Airlines and charter flight operators need PayPal's pre-approval before accepting payments.

Read the exact policy language
“Airlines and scheduled or non-scheduled charters/jets/air taxi operators.”
Restricted

Charities / Non-Profit

Charities and non-profits must get pre-approval before collecting donations through PayPal.

Read the exact policy language
“Collecting donations as a charity or non-profit organization.”
Restricted

High Value Items

Dealers in jewels, precious metals, and stones need pre-approval before accepting payments.

Read the exact policy language
“Operating as a dealer in jewels, precious metals and stones.”
Restricted

Payment Facilitator

Money service businesses, electronic money institutions, stored value card sellers, and escrow services need pre-approval.

Read the exact policy language
“Providing payment services which would fall under the definition of a money service business or an electronic money institution. Services would also include the sale of stored value cards and escrow services.”
Restricted

Investments

Brokers and platforms dealing in stocks, securities, forex, commodities, or other investment interests need pre-approval.

Read the exact policy language
“Buying, selling, or brokering stocks, bonds, securities, options, figures, commodities, contracts for difference/forex, mutual funds or an investment interest in any entity or property.”
Restricted

Gambling, Gaming, Prize Draws and Contests

Gambling, betting, fantasy sports, lotteries, games of skill, and sweepstakes all need pre-approval, and only where both operator and customers are in jurisdictions that permit the activity.

Read the exact policy language
“Activities involving gambling, gaming and/or any other activity with an entry fee and a prize, including, but not limited to property/real estate prizes, casino games, sports betting, horse or greyhound racing, fantasy sports, lottery tickets, other ventures that facilitate gambling, games of skill (whether or not legally defined as gambling) and sweepstakes”
Restricted

Cryptocurrency

Businesses dealing in cryptocurrency, in-game currencies, or NFTs need PayPal's pre-approval.

Read the exact policy language
“Any digital representation of value that can be digitally traded, transferred, or used for payment, including, but not limited to, crypto currencies, virtual in-game currencies, or non-fungible tokens.”
Restricted

Prescription Items

Online pharmacies and anyone selling prescription products or dispensing services need pre-approval.

Read the exact policy language
“The sale of any product(s) requiring a prescription or prescription dispensing services.”
Restricted

Telemedicine Services

Telemedicine and telehealth providers need PayPal's pre-approval before accepting payments.

Read the exact policy language
“Providing medical services and consultations in a remote fashion.”
Restricted

Mature Audience Content

Digitally delivered adult content such as video on demand and web-cam services needs pre-approval, and PayPal warns it may be unable to process adult products in some jurisdictions.

Read the exact policy language
“Any adult content delivered digitally including video on demand (VOD) and web-cam activities. PayPal may be restricted from processing payments in certain jurisdictions for adult DVD’s, magazines and other adult themed products or services.”
Restricted

Online Dating

Dating services and apps need PayPal's pre-approval before accepting payments.

Read the exact policy language
“Any dating services that enable individuals to find and introduce themselves to new people with the goal of developing a personal or romantic relationship.”
Restricted

Live Streaming/Broadcasting

Live streaming and broadcasting platforms with user interaction need pre-approval.

Read the exact policy language
“Any activities in which people transmit video, voice or text content in a live environment with the potential of user interaction.”
Restricted

File-Sharing

File sharing services and cyberlockers where uploads are public or uploaders get paid need pre-approval.

Read the exact policy language
“Providing file sharing services including cyberlockers and similar remote digital file sharing services where uploaded content is accessible to the public or the service pays uploaders for content.”
Restricted

Alcohol

Alcohol sellers need PayPal's pre-approval before accepting payments.

Read the exact policy language
“Selling alcoholic beverages.”
Restricted

Tobacco

Vape shops, e-cigarette sellers, and cigar merchants need pre-approval, while regular cigarettes are banned outright under the prohibited list.

Read the exact policy language
“Non-cigarette tobacco products, e-cigarettes, cigars”
Restricted

Medical Items or Services

Medical device sellers and health-care providers, including medical tourism arrangements, need pre-approval.

Read the exact policy language
“All items classified as medical devices, and all services or treatment provided by a person or organization holding itself out as a provider of health-care services”
Restricted

Multilevel Marketing and Direct Selling Organizations

MLM and direct-selling companies need pre-approval, separate from the pyramid schemes that are banned outright.

Read the exact policy language
“Direct Sales Organizations (“DSOs”) and the Multi-Level Marketing (“MLMs”) are distribution and marketing models in which products or services are sold via a network of independent distributors or representatives.”
Restricted

Marketplaces

E-commerce marketplaces hosting third-party sellers need PayPal's pre-approval.

Read the exact policy language
“A marketplace is an e-commerce solution where third-party sellers can sell their products or services to customers.”

Source: Acceptable Use Policy, captured 2026-08-07. A category not named above is not an approval. Processors decline high-risk merchants case by case.

FAQ

Common questions about PayPal's list.

Does PayPal allow gambling or sports betting businesses?

Not without sign-off first. PayPal's Acceptable Use Policy lists gambling, gaming, prize draws, and contests as activities requiring pre-approval, covering casino games, sports betting, fantasy sports, lottery tickets, games of skill, and sweepstakes. Even with approval, the policy limits these activities to operators and customers located exclusively in jurisdictions where they are permitted by law.

What does PayPal's pre-approval requirement mean?

PayPal keeps a chart of 18 business categories it will only serve after reviewing and approving the merchant in advance. Using PayPal for one of these activities without that approval is itself a violation of the Prohibited Activities list. The policy directs merchants seeking pre-approval to contact PayPal's sales team.

Does PayPal allow adult content?

The policy treats adult businesses two ways. Certain sexually oriented materials or services appear on the Prohibited Activities list, so they are banned outright. Digitally delivered adult content, such as video on demand and web-cam activities, falls under the Mature Audience Content pre-approval category instead, and PayPal notes it may be restricted from processing payments for adult products in some jurisdictions.

Can I sell firearms or ammunition through PayPal?

PayPal's Prohibited Activities list bars transactions involving ammunition, firearms, or certain firearm parts or accessories, along with certain weapons or knives regulated under applicable law. There is no pre-approval path for these categories in the published policy, so firearms sellers generally need a processor that accepts the industry.

What happens if I violate PayPal's Acceptable Use Policy?

The policy states that violating the Acceptable Use Policy constitutes a violation of the PayPal User Agreement, which is the contract governing your account. PayPal also encourages users to report suspected violations and offers a channel for asking whether a transaction type is allowed. Merchants in the listed categories often avoid disruption by working with a processor that accepts their industry from the start.

On the list?

PayPal won't board your category. We underwrite the legal ones.

Midnight Payments approves high-risk businesses with category-aware underwriting, low or no monthly fees, no long-term contracts, and daily ACH settlement. And if a shutdown already happened, a MATCH or TMF listing still has options.