Tagada
Payments · Skincare4 min readUpdated October 26, 2026

Do PayPal and Square Allow Skincare Products?

PayPal and Square don't name skincare, but their terms cover safety risks, subscription offers, upsells and membership clubs. Reserves, holds and options.

Nick Bonnassies, CMO at Tagada · checked against 6 sources

Article summary

Yes, with limits

TL;DR

Neither names skincare. PayPal's Acceptable Use Policy has no line on cosmetics, only a general ban on "products that present a risk to consumer safety", and PayPal can hold a balance for up to 180 days. Square's US terms exclude "direct marketing or subscription offers or services", "up-sell merchants" and "buyers or membership clubs", which covers how many beauty brands sell online. Use PayPal as an extra method; avoid Square for online subscriptions.

  • PayPal's Acceptable Use Policy doesn't mention cosmetics, skin or beauty; the general line is "products that present a risk to consumer safety".
  • PayPal can hold funds "for up to 180 days" in some cases, and warns a reserve may never be fully removed.
  • Square excludes "direct marketing or subscription offers or services", "up-sell merchants" and "buyers or membership clubs".
  • Square "may defer payout or restrict access to your Proceeds, temporarily or indefinitely".
  • Drug-like claims make a cosmetic a drug under FDA rules, whatever the processor.
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On this page

This guide is part of our hub on skincare payment processing.

PayPal vs. Square for skincare

PayPalSquare (US)
Skincare named?NoNo
Closest rules"Products that present a risk to consumer safety"1PayPal Acceptable Use Policy, updated October 29, 2022Subscription offers, up-sell merchants, membership clubs4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026
Refill subscriptions onlinePossibleExposedTo the subscription offers line4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026
Beauty clubs and VIP membershipsJudged on terms and disputesExposedTo the membership clubs line4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026
Funds after a problemUp to 180 days2PayPal User Agreement, updated September 14, 2026Deferred "temporarily or indefinitely"4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026
Best useExtra payment method next to cardsIn-person and one-time sales

PayPal: rules and reserves

Fig. 1How PayPal holds a skincare brand's money

  1. Rolling reserve

    PayPal's example: 10% held for a 90-day rolling period.

  2. Minimum reserve

    Reviewed within every 180 days.

  3. Hold after a limitation

    Funds held for up to 180 days.

Know which one you're under before you plan cash.

PayPal User Agreement, September 14, 2026, and PayPal on account reserves, November 17, 2025.

Square: subscriptions, upsells and clubs

Square's unsupported industries include4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026:

  • "Direct marketing or subscription offers or services"
  • "Up-sell merchants"
  • "Buyers or membership clubs"
  • "High-risk products and services"

A beauty brand selling refills on subscription, with post-purchase upsells and a VIP club, touches three of these lines. A salon selling products at the counter touches none.

Fig. 2Which Square line each sales model touches

A beauty brand on SquareSame products, different ways of selling
  1. Refills on subscription"Direct marketing or subscription offers or services"
  2. Post-purchase upsells"Up-sell merchants"
  3. VIP club"Buyers or membership clubs"
  4. Products sold at the counterNo line touched
Square Payment Terms (US), updated July 30, 2026.

Watch out

Square can delay payouts while chargebacks are pending and can require a reserve for reasons related to your use of its services4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026.

Use them well

  1. PayPal as a payment method next to a card processor that reviewed your brand.
  2. No online subscriptions or clubs on Square4Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026.
  3. Cosmetic claims only5FDA, Is It a Cosmetic, a Drug, or Both? (Or Is It Soap?), September 11, 2024.
  4. Trial terms shown separately, with a reminder at least 7 days before the end6Visa Core Rules and Visa Product and Service Rules, edition of April 18, 2026, tables 5-20 and 5-21.
  5. Withdraw balances regularly.

Based on PayPal's and Square's terms, FDA guidance and Visa's trial rules.

Tagada follows Visa and Mastercard rules and the laws that apply to payments.

Choosing your methods: payment methods for skincare brands.

How Tagada helps

PayPal plus an underwritten card processor for skincare

  • TagadaPay underwrites each file, with enhanced review on regulated verticals
  • Routing across Stripe, Adyen and TagadaPay, cascade on decline
  • One-page checkout with Apple Pay and Google Pay
  • Subscriptions with trials, billing cycles, retries and automatic recovery

Plans are on the pricing page.

Apply for processing
PayPal plus an underwritten card processor for skincare

Updated on October 26, 2026

Nick Bonnassies

CMO at Tagada

CMO at Tagada. Before Tagada, Nick built direct-to-consumer brands that generated over $115M in sales, raised over $25M in crowdfunding and sold two of them. He also works as a fractional CMO on marketing operations and AI systems.

Frequently asked questions

Does PayPal allow skincare products?

Yes. PayPal's Acceptable Use Policy doesn't mention cosmetics or skincare; it bans "products that present a risk to consumer safety". It can set reserves and hold funds for up to 180 days in some cases.

Can I use Square for my skincare brand?

For in-person or one-time sales, often yes. Online subscriptions, upsell funnels and membership clubs fall under Square's unsupported industries, so those models are better on another processor.

Why did PayPal put a reserve on my beauty store?

PayPal uses rolling, minimum and jumpstart reserves, reviews minimum reserves within every 180 days, and says a reserve may never be fully removed. Low disputes and clear terms help.

Can I run a beauty membership club on Square?

Square's US terms list "buyers or membership clubs" among unsupported industries. Run memberships on a processor that has reviewed the model: memberships for skincare brands.

Sources

Checked October 26, 2026
  1. PayPal Acceptable Use Policy, updated October 29, 2022
  2. PayPal User Agreement, updated September 14, 2026
  3. PayPal, The why and what of account reserves, November 17, 2025
  4. Square, Payment Terms (US), sections 3, 12, 14 and 20, updated July 30, 2026
  5. FDA, Is It a Cosmetic, a Drug, or Both? (Or Is It Soap?), September 11, 2024
  6. Visa Core Rules and Visa Product and Service Rules, edition of April 18, 2026, tables 5-20 and 5-21

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