PayPal Drops 'Hate' and 'Intolerance' From Its Rules After ADF Raises Debanking Concerns
The payments company now ties its ban to traits protected by law, a change Alliance Defending Freedom says should help keep religious customers from being cut off.
See where this is ›WASHINGTON —
PayPal has taken the words “hate” and “intolerance” out of the rules that decide which transactions it will refuse, after the religious-liberty law firm Alliance Defending Freedom objected to the policy before a federal banking regulator, ADF and The Christian Post reported.
See where this is ›ADF said in a Nov. 5 release that PayPal's revised Acceptable Use Policy was expected to be published on or about Nov. 4. The Christian Post reported Nov. 7 that the company updated the policy this week.
The old rule barred transactions involving “the promotion of hate, violence, racial or other forms of intolerance that is discriminatory.” The new wording limits the ban to discrimination against traits “protected under applicable law.” PayPal also said it will narrow a rule against “misleading information” so that it covers only communications about PayPal transactions.
See where this is ›The dispute played out before the Federal Deposit Insurance Corporation, which is reviewing PayPal's application for deposit insurance for PayPal Bank, a proposed industrial bank in Utah. ADF filed a comment with the FDIC in July. The Christian Post reported that PayPal laid out the changes in a Sept. 15 letter to the agency, and ADF withdrew its objection after PayPal notified the FDIC.
“Americans should never fear that their bank or financial services provider will cancel them or deny them service because of their religious beliefs or political views,” said Jeremy Tedesco, ADF senior counsel and senior vice president of its Counter-Censorship Task Force. He said the company's commitments are an important step, and that ADF will be watching to make sure the changes are applied fairly.
“ADF commends PayPal for taking this step in the right direction,” said Caleb Dalton, another ADF senior counsel. PayPal also added a statement to its website saying it reviews accounts fairly and consistently, based on account activity and not on a customer's religion, political affiliation or other legally protected traits. Neither report included further comment from a PayPal spokesperson.
The change comes amid a wider fight over “debanking,” when banks or payment firms close the accounts of lawful customers. ADF noted that PayPal froze the accounts of the parents' group Moms for Liberty in 2022 and reversed course only after public outcry. An executive order signed Aug. 7, 2025, directed federal regulators to identify politicized or unlawful debanking, and ADF said most of the largest U.S. banks have changed their policies along similar lines in recent years.
For churches, ministries and Christian business owners who take donations or payments online, the practical question is how the new wording is applied. ADF said it wants PayPal to replace subjective terms with “clear, objective standards” and will keep monitoring the company.
