PayPal Beats Claim by Sellers That User Agreement Favors Buyers

A group of California residents who use PayPal Inc. to receive payments for their online businesses failed to allege the platform’s user agreement is unfair to sellers and that its return and dispute resolution policies enables fraud by buyers, a state appellate court said Tuesday.

Ten sellers filed a proposed class action against PayPal in 2015 in Alameda County. They challenged the online payment system’s policies of placing temporary holds on certain transactions, allowing buyers to dispute transactions up to 180 days after purchase, and retaining the interest when users maintain a balance in their accounts. PayPal also aids and ...