It'll cost you $20.00 if you don't use your PayPal account at least once a year, as the popular payment platform is implementing a new annual account inactivity fee in Canada.
The change was first spotted in PayPal's Canadian User Agreement update on August 11, with a note simply stating "We are introducing an annual account inactivity fee of $20 CAD", effective November 20, 2021.
Beyond the User Agreement update, there is no mention of the upcoming change elsewhere on PayPal's website and more importantly, no indication of what the company considers to be an inactive account.
This isn't the first time PayPal has implemented an inactivity fee, as the company introduced a similar fee on UK accounts in December 2020. If the criteria is the same in Canada, accounts that have not used PayPal for 12 consecutive months will be considered inactive and charged the annual $20.00 inactivity fee (we've reached out to PayPal for clarification).
To avoid the inactivity fee, simply log into your PayPal account or use your account to make a payment at least once per year. Additionally, PayPal will not charge credit or debit cards linked to your account and will withdraw any inactivity fees from PayPal wallet balances – in other words, you will not be charged if you have a $0.00 wallet balance.
Initial reaction to the changes have been generally negative, with some account holders stating that they plan to delete their account entirely, while others view a once-a-year login as a minor nuisance. In the UK, accounts approaching the one-year inactivity mark were warned in advance via email, but it's unknown if Canadian account holders will receive any notifications.
To close your PayPal account, simply log into your account online, withdraw any funds from your wallet balance, then click the gear icon along the top navigation bar and click Close your account under your profile. To remove a credit or debit card from your account, log into your account online, then click Wallet along the top navigation bar to manage all cards linked to your account.
PayPal is an online payment platform originally launched in 2002 and popularized by its integration with eBay. The platform expanded to Canada in 2006 and is now accepted at millions of merchants nationwide, including popular retailers like Best Buy, Sport Chek, Walmart and more.