
PayPal Quietly Adds $20 Annual Fee for Inactive Accounts in Canada
By Simon Hung
August 18, 2021It'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.
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Source: PayPal
Showing 40 Most Recent Comments
View allTheir system is ********, it didn't recognized USD visa trying to pay for US purchase, showing me PP offers a better exchange rate, keeps changing conversion back to CDN on US card. I stopped using it and direct buy with company or use Amazon.
Had around $50 there. Wow, what a dick move.
Smells like another class action.
Update: was able to restore my access after call with PayPal support, reset phone# and security questions. Support did not want to deal with my complaint about unauthorized $20 charge, said I already filed dispute so let dispute run its course.
Update: PayPal decided that the transaction was not unauthorized. Pulled all money from it and removed bank account to prevent further theft and trying to close the PayPal account but PP wants to call my old phone number to confirm even though that was already changed hours ago. What a mess ..
Is there a class action or group small claim? I would like to join.
Before you close your account…
Sorry, there's a problem. If you keep seeing this, please contact customer service.
Silly paypal!
You can't close your account if there are limitations, unresolved issues, or a balance. Here's how to close your PayPal account:
Click the Settings icon next to "Log out".
Click Close your account under "Account options".
Enter your bank account number if requested.
Click Close Account.
So now balance 1.95 + 5 = 6.95 will donate to Charity.
Offer Period: Starts at 12:00 a.m Eastern Time (“ET”) on August 16, 2021 and ends at 11:59 p.m. ET on August 31, 2021 (“Offer Period”).
I initiated my $13.05 transfer in on Aug. 20, and received the email notification that it was in my PayPal wallet on Aug. 27. Yes, PayPal is slimy because the funds were already taken out of my bank account in about half the time it took them to post it to the PayPal wallet. Interestingly, the subsequent $15 transfer out to my bank account happened much faster: completed within a day or two.
they "say" they won't charge the cards on file... time to use up my wallet and exit stage left.
The inactive account fee will be a fabourite mark forscammer and malware virus.
I will see ..eventually I will dump PayPal because of this policy. And very high currency conversion rate.
This company exist because we purchase using them.
Is this really work? no fee charged for transfer back to bank?
Good way to become obsolete
I use PayPal every so often but kept a balance through refunds, in hopes that my U.S. funds stretch further as the Canadian dollar gets better (hopes). That was why I kept a balance.
eBay left PayPal correct? I think I opened a PayPal account FOR eBay ...
If it's no longer needed, then why do I need PayPal? Ease of payment on SOME sites, sure, but why do I need PayPal then? Any good reason?
Might seriously consider leaving
Private corporations being able to do whatever they want is not an absolute concept.
Same for PayPal I'd guess.
I would encourage everyone who has such an amount to call PP and request a cheque. Cutting and mailing out cheques is the hardest they can be hit over this dick move they are making.
In any case, I have been unable to log in to PP due to a system problem they are have with a (large?) number of accounts where they are insisting on mobile phone numbers for (insecure) SMS 2FA but failing to actually send the 2FA confirmations. I have just asked them to close my account and mail me a cheque for the $1.95 balance which they have confirmed they are going to do. It might not seem like a lot, but it's the principle of not allowing them to douche themselves out of having to pay that class action settlement fee for being douchebags.
They refuse to allow me to close the account. Will they charge me?
EDIT: After spending some time on the phone. They still refused to allow me to close the account, but said the $20 fee won't be applied to accounts that have been limited. I guess we'll just have to wait and see...
Wealthsimple has a cash app so if anyone wants to leave money in their " online account", they can try wealthsimple cash. wait for their $75 - $100 referral or sign up bonus
Most people don't keep money in their PP account but many people have this $1.95 balance from their class action settlement.
The problem is that you cannot transfer this amount out to your bank account as there is a $15 minimum. So many accounts are letting this $1.95 ride.
But PP wants this settlement payment back, so the way they do this is by reaping it back in a $20 inactivity fee.
Dirty scumbags.