PayPal Quietly Adds $20 CAD Fee For Unused Accounts In Canada

If you’re a PayPal user in Canada, you likely got an email that looks like this one in the middle of August:

Now most of us ignore these sorts of emails. But you shouldn’t ignore this one. Because included in the changes that they reference, is this little factoid:

So the way I read it, if you don’t use your PayPal account for 12 months, you get dinged $20. 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. But the reaction to this in Canada has been the same as the UK. Which is there has been a very negative reaction. Some have deleted their PayPal entirely because of this.

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.

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 has some explaining to do on this front as the way this has rolled out really seems “sketchy A.F.” because it looks like it was done under the cover of night rather than being done in the light of day where the company could clarify things for users. That would have avoided this negative reaction that is being seen now.

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