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 gets automatically renewed?
I am one of those unfortunate people who was charged by many services automatically when I didn’t want to renew. And this guide is to help you save your fortune!
Cancel PayPal Billing Agreement/Subscription
- Log into your PayPal account.
- Click on Profile Tab as shown below.
- On next screen, you will see many options/links. Click on “My money > My pre-approved payment.” (see screenshot)
- 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.
- You will see on next page terms of billing agreement/subscription, how much money you have authorized the service provider to deduct from your account and few other details. Most important links to Cancel agreement, in case if it is active.
- If you click on Cancel, you just have to confirm it once again.
That’s it. You have to repeat last 2-3 steps for each provider one-by-one.
When do 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…
- 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.
- If you have subscribed to a service where the option to cancel subscription or billing agreement is not given. From the developers perspective, we know that when creating a service which uses PayPal API for subscription/billing agreements, we are not forced to give the option to cancel them in user-interface at all.
- 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 the 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! 😀
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 credit card), 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:
- Domain name doesn’t cost much (at least common TLD’s)
- Loosing a domain-name accidentally can be your biggest nightmare
- 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 want to loose and for that automatic part to work, GoDaddy must have a way to get money from somewhere on your behalf! So losing around $10 accidentally is not a big loss, when
The only thing I don’t like about the 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?
Here are few hand-picked articles to read next:
- Top 7 Paypal Alternatives For Bloggers and Freelancers
- How To Create an Invoice Using PayPal & Request Money
- PayPal vs. Payoneer: Which one helped me earn an extra $1,700/year?
- How To Send Money Using PayPal Mass Payment
- How To Export PayPal Transaction Details For Accounting Purposes