Set up a recurring payment by creating a subscription billing agreement
To make a payment repeat automatically on PayPal, you create what PayPal calls a subscription billing agreement. This tells PayPal to charge your account on a schedule you choose—weekly, monthly, yearly, or any interval you set. The merchant (the person or business receiving the money) initiates the agreement, you approve it, and then PayPal handles the charges without you having to log in each time.
The process differs slightly depending on whether you are setting up a recurring payment as a customer (paying someone else) or as a merchant (collecting recurring payments from customers). Most readers need the customer side: you are paying a subscription, membership, or service that bills you repeatedly.
PayPal does not charge you a fee to receive recurring payments as a customer. The merchant may pay a processing fee to PayPal, but that does not affect what comes out of your account.
Key Takeaways
- Most recurring payments start when a merchant sends you a subscription link or invoice; you click it, review the amount and frequency, and approve the agreement in PayPal.
- You can cancel any recurring payment at any time by going to your PayPal account settings, finding the active subscription, and clicking "Cancel Subscription."
- PayPal will notify you by email before each charge, so you can catch billing errors or unexpected amounts before money leaves your account.
- If a recurring charge fails (expired card, insufficient funds), PayPal retries the payment a few times; contact the merchant or update your payment method if you want the subscription to continue.
- You can update the payment method linked to a recurring subscription without cancelling and restarting the agreement.
How a merchant sends you a recurring payment link
When you sign up for a service that bills monthly—a streaming app, gym membership, software subscription—the merchant usually sends you a PayPal payment link or invoice. Click that link, and it takes you to PayPal's site. You will see the subscription details: the amount, how often it charges (monthly, for example), and the start date. Review these carefully, because approving the agreement means you are authorizing PayPal to charge you on that schedule until you cancel.
Once you approve, PayPal shows you a confirmation page and sends you an email receipt. The merchant also receives notification that the agreement is active. Your first charge may happen immediately or on the date the merchant specified—check the confirmation email to see when to expect the first debit.
Some merchants use PayPal's Subscribe Button or Recurring Payments feature on their own website or invoice. The process is the same: you click, review, approve in PayPal, and the agreement is live.
Cancelling a recurring payment
You can stop any recurring payment at any time, even if you signed a contract with the merchant. PayPal's role is only to process the charges; cancelling the subscription with PayPal does not automatically notify the merchant, so you may need to contact them separately if they require notice.
To cancel: Log into your PayPal account on a computer or the PayPal app. Go to Settings (or the menu icon on mobile), then Payments, then Manage automatic payments. Find the subscription you want to stop, click it, and select Cancel Subscription. PayPal will ask you to confirm. Once you do, no further charges will occur.
The cancellation takes effect immediately. If the merchant has already charged you for the current period, that charge will not be reversed—you would need to contact the merchant to request a refund or credit.
What happens if a recurring payment fails
If PayPal cannot process a recurring charge—because your card expired, your account has insufficient funds, or your bank declined the transaction—PayPal will retry the payment. The number of retries and the timing vary by merchant agreement, but typically PayPal tries again a few days later and then once more before giving up.
You will receive an email notification each time a charge fails. If you want the subscription to continue, update your payment method in PayPal: go to Settings, Payments, Manage payment methods, and add or update a card or bank account. PayPal will attempt to charge the subscription again using the new method.
If you do not update your payment method and the retries are exhausted, the subscription becomes inactive. The merchant may contact you asking you to restart the agreement, or they may simply stop providing the service. Check your email for notifications from the merchant.
Changing the payment method for an active subscription
You do not have to cancel and restart a subscription to use a different card or bank account. Go to Settings, Payments, Manage payment methods, and update or add the method you want to use. PayPal will use the new method for the next scheduled charge.
If you want to remove an old card or bank account entirely, make sure you have set a different method as your primary payment source first. PayPal will not let you delete the only payment method linked to an active subscription.
Reviewing charges before they happen
PayPal sends you an email notification before each recurring charge. This email includes the amount, the date of the charge, and the merchant name. Use this as your chance to catch errors: if the amount is wrong, the date is unexpected, or you no longer recognize the merchant, contact PayPal or the merchant before the charge posts.
You can also log into your PayPal account and check your Activity or Transaction History to see all past charges and upcoming scheduled charges. This is useful if you have multiple subscriptions and want to track when each one bills.
Disputing a recurring charge if something goes wrong
If a recurring charge posts to your account and you believe it is wrong—the amount is incorrect, you cancelled the subscription but were still charged, or the merchant is not providing the service—you can dispute the transaction. Log into PayPal, find the charge in your transaction history, click it, and select Report a Problem. Choose the reason (unauthorized charge, subscription cancelled, service not received) and provide details.
PayPal will investigate and contact the merchant. If PayPal determines the charge was unauthorized or the merchant cannot justify it, PayPal will refund you. This process typically takes 10 business days, though it can take longer if the merchant disputes the claim.
If you dispute a charge, PayPal may also cancel the underlying subscription agreement to prevent future charges. Check your active subscriptions after filing a dispute to confirm.
Frequently Asked Questions
Can I set up a recurring payment without the merchant sending me a link?
No. Recurring payments must be initiated by the merchant or through their website or invoice. You cannot create a subscription on your own in PayPal. If a merchant does not offer PayPal recurring billing, you would need to pay them manually each time or use a different payment method they support.
What if I cancel a subscription but the merchant keeps charging me?
Contact the merchant first and ask them to confirm the cancellation on their end. Some merchants have their own billing system separate from PayPal. If they confirm it is cancelled and charges continue, report the unauthorized charge to PayPal using the dispute process. PayPal can investigate and potentially block future charges.
Do I need to do anything if my card expires but I have a subscription active?
Update your payment method in PayPal before the card expires. If the card expires and PayPal tries to charge it, the charge will fail and PayPal will retry. You will receive an email asking you to update your payment method. Do this as soon as possible to avoid service interruption.
Can I pause a subscription instead of cancelling it?
PayPal does not have a built-in pause feature. Your options are to cancel the subscription or contact the merchant and ask if they can pause billing on their end. Some merchants offer this, but it depends on their system. If you cancel, you can always restart the subscription later by going through their sign-up process again.
What if a recurring payment charged me twice in one month?
Check your subscription settings to confirm the billing frequency. If it is set to monthly and you were charged twice, report the duplicate charge to PayPal as a billing error. Provide the transaction IDs of both charges. PayPal will investigate; if it was a system error, they will refund the duplicate charge. If the merchant intentionally charged twice, they will need to explain why.