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How to Cancel PayPal Billing Agreement or Automatic Renewal

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How to Cancel PayPal Billing Agreement or Automatic Renewal

Last time we shared how to find recurring pay list in Paypal and now extending this series to stop you getting billed automatically in Paypal. How many times it happened that you have registered a domain name, say from GoDaddy, and a year later you were charged automatically even when you ignore their renewal reminders? Or, you signed up for a monthly subscription for some service and then didn’t find (hidden) option to cancel the subscription which get automatically renewed?

I am one of those unfortunate person who was charged by many services automatically when I didn’t wanted to renew. And this guide is to help you save your fortune!

Cancel PayPal Billing Agreement/Subscription

  1. Log into your PayPal account.
  2. Click on Profile Tab as shown below.Rahul Bansal s PayPal Account2 520x209
  3. On next screen, you will see many options/links. Click on “My money > My pre-approved payment”. (see screenshot)
  4. Cancel Paypal pre approved Payment
  5. On this page you can filter then Paypal subscription list based on active and suspended. Select active to filter currently active pre-approved payments on your Paypal account.

Pre approved Paypal list

  1. Recurring payments dashboard PayPal 520x346 You will see on next page terms of billing agreement/subscription, how much money you have authorized service provider to deduct from your account and few other details. Most important is link to Cancel agreement, in case if it is active.
  2. Billing Agreement Details PayPal 520x304
  3. If you click on Cancel, you just have to confirm it once again. Billing Agreement Details PayPal 1

That’s it. You have to repeat last 2-3 steps for each provider one-by-one.

When you need to cancel PayPal Billing Agreement?

There are situations where you need to know how to cancel billing agreements or automated subscription renewals. Few of them are mentioned below…

  1. If you are using your PayPal account to buy a domain name/hosting or anything on behalf of your friend, you must check your PayPal account’s My pre-approved payment page afterward. Without your clear knowledge, you might have entered into billing agreement or automated subscriptions where you will be charged unknowingly.
  2. If you have subscribed to a service where option to cancel subscription or billing agreement is not given. From developers perspective, we know that when creating a service which uses PayPal API for subscription/billing agreements, we are not forced to give option to cancel them in user-interface at all.
  3. You don’t like the service and want to say bye-bye to them! It will be safer to cancel automated payments at PayPal’s end.

But PayPal Billing Agreement/Subscription is a Good Feature

In GoDaddy’s case, I was new to the web and did not know meaning of “PayPal Billing Agreement”. It sounded to me like terms of service/privacy agreement which we never read but always have to agree to! :D

When I brought domain, I thought I was done after completing the payment via PayPal. But a year later, I was charged automatically.I thought, ignoring domain renewal emails from GoDaddy would suffice but later I realized, GoDaddy by default set domain registration to renew automatically.

Also, when you pay by PayPal (or CreditCard) you enter into a “Billing Agreement” which authorize GoDaddy to charge your PayPal account at the time of renewal without your intervention. This Billing Agreement authorize them to charge your PayPal account even if after your death, provided you have some balance left in your PayPal! ;-)

GoDaddy’s PayPal billing agreement is useful because:

  1. Domain name don’t cost much (atleast common TLD’s)
  2. Loosing a domain-name accidentally can be your biggest nightmare
  3. Life is unpredictable and you never know where you will be on the last day of your domain registration period.

So automatic renewal makes sense for domains you never wants to loose and for that automatic part to work, GoDaddy must have a way to get money from somewhere on your behalf! So loosing around $10 accidentally is not a big loss, when

Only thing I don’t like about whole situation at GoDaddy is, they don’t make things clear (for obvious reasons).

Same is the case with many other service providers who ask you to opt-in for PayPal Billing Agreement or automatic subscription renewal.

Overall, I like the feature but knowing PayPal steps to cancel pre-approved payment is a good thing.

Do let us know if you ever lost some bucks when you forgot to cancel billing agreement or your subscription in time?

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    { 12 comments… add one }

    • Hassan

      I could not find how to cancel this automatic billing, thanks, Paypal should pay you for helping their customers know about how to do this.
      Thanks million times

      Reply
    • Rajiv JAIN

      I tried to cancel my auto payment to Pandora and went on a treasure trying to figure out how to do it. I feel the website purposefully make it difficult to figure out a method to cancel payments. Finally I did a google search, found your link and viola in a few seconds was done. Thanks for this post.

      Reply
    • VCETC

      Thank you so much, I wasted a lot of time searching for this information and then found your post!

      Reply
    • ivan

      Thanks for this article it helps a lot

      I had just canceled my godaddy renewal process

      Reply
    • Bloodygodaddy

      I also facing this situation now, I am requesting a dispute case on this automatic charge transaction of godaddy. Anyone can tell me whether is it possible to my money chargeback? Thanks in advance.

      Reply
    • Simon

      Step 3 is already outdated. The page doesn’t look like that anymore. It is even more difficult now to cancel preapproved payments to godaddy.

      Reply
    • Hanekira

      Thank you for this information, I also was trying to prevent a recurring charge from Skype every 3 months, when trying to cancel the subscription from the Skype Account Management it told me to cancel it from PayPal. PayPal was too confusing with this information and I couldn’t find it anywhere, hence I was about to give PayPal a call when I decided to give Google Search a try :) Thank you for this information you saved my pocket.

      Reply
    • Dan

      How do I cancel a Billing Agreement?

      Question :
      Answer :
      We’re introducing a new and improved Profile to some customers. Until all customers are using the new Profile, there are 2 sets of instructions on how to do this. Please follow the instructions that match what you see on the site.

      Use the following steps to cancel a Billing Agreement:

      1. Log in to your PayPal account.
      2. Click Profile at the top of the page.
      3. Click the Pay List link in the Financial Information column. (Don’t see this step? Follow the instructions below.)
      4. Find the merchant whose agreement you want to cancel.
      5. Click the merchant’s name or email address.
      6. Click Cancel.

      Or

      1. Log in to your PayPal account.
      2. Click Profile at the top of the page.
      3. Click My money.
      4. Click Update in the My preapproved payments section.
      5. Select the merchant’s name or email address.
      6. Click Cancel.

      Reply
    • michelle

      Thank you so much for posting this! I’ve been having money taken from my account once per month for the past 4 months and I have never been able to figure out why. Thanks to this, I found out I still had a billing agreement with Skype and they were taking money even though I no longer use it! This is much appreciated!

      Reply
    • Torley

      THANK YOU, PayPal’s own site made it so hard to find this! I was trying to cancel a billing agreement with Skype and Skype didn’t provide a link. I googled and your page showed up near the top.

      Reply
      • Abhishek

        thanks for this article. I really wonder how websites like freelancer.com can be so misleading when it comes about payment. They never showed or asked for auto renewal option. I, by chance went deeply into Paypal account where I found the merchant Freelancer autorised for an auto renewal! Damn! Cancelled it in flash

        Reply
    • Bela

      Godaddy pulled some mony from my account today – I don’t like this.
      I cancelled the “agreement”.
      Thanks for the article, very useful!!!

      Reply

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