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How to Cancel PayPal Billing Agreement or Automatic Renewal

how to chargeback paypal

By: rahul286 In:Entrepreneurship & Startup Last Updated: 15/02/2015 (13 Comments )

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.

  3. On next screen, you will see many options/links. Click on “My money > My pre-approved payment”. (see screenshot)
  4. 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.

  1. 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. 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 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?

Category: Bank

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