Shopping Discussion

PayPal Canada introducting account inactivty fees of $20/yr

  • Last Updated:
  • Dec 19th, 2021 12:30 pm
[OP]
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Apr 29, 2018
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PayPal Canada introducting account inactivty fees of $20/yr

I got this email just now from PayPal saying they are changing the User Agreement and it looks like they are adding a $20/yr account inactivity fee effective Nov 2021.

Image

Link - https://www.paypal.com/ca/webapps/mpp/u ... icies-full
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51 replies
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Feb 11, 2007
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kramer1 wrote: I got this email just now from PayPal saying they are changing the User Agreement and it looks like they are adding a $20/yr account inactivity fee effective Nov 2021.

Image

Link - https://www.paypal.com/ca/webapps/mpp/u ... icies-full
Sounds like all you have to do is log in once a year.
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Sr. Member
Aug 24, 2018
612 posts
291 upvotes
Langley BC
And not allowing me to log into my account without a phone number.
But I don't which one I used.
If I put the wrong one in, it just adds them to the collection of data, which I try to avoid.
Supposedly this was new in a previous agreement, but I sure didn't pick up on it!
Deal Fanatic
Dec 26, 2014
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Winnipeg, MB
They rolled this out in other countries earlier this year and literally all you need to do is log in at least once per year.

Also you don't get charged if your account balance is $0. I don't know why anyone would honestly keep money in their Paypal balance long-term anyways if they're not using the account.
Sr. Member
Dec 8, 2009
688 posts
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chemicalxv wrote: They rolled this out in other countries earlier this year and literally all you need to do is log in at least once per year.

Also you don't get charged if your account balance is $0. I don't know why anyone would honestly keep money in their Paypal balance long-term anyways if they're not using the account.
I don't either, but I'm guessing they did an audit of accounts and found a bunch of inactive accounts with balances they can get some money out of in the future.
[OP]
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Apr 29, 2018
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I can't seem to find any info confirming that you only need to login once a year. Got a source?

I have an Australian PayPal too and nothing like this on there
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Jan 17, 2009
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chemicalxv wrote:
Also you don't get charged if your account balance is $0. I don't know why anyone would honestly keep money in their Paypal balance long-term anyways if they're not using the account.
I would hope people are not treating their PayPal account like their own bank account and keeping money in there for a long period of time. If you're someone who does this, just google something like "never leave money in paypal" and you will find a bunch of horror stories about why it's a bad idea.
Some people finding their account balance randomly frozen and not accessible for 6+ months.

Never trust those scumbags. If you are not going to immediately use the money, transfer it out.
Deal Guru
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Apr 10, 2011
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Thanks for posting OP, I flushed the email without reading it as usually Terms & conditions updates are mundane.

Time to flush PayPal.
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Mar 12, 2005
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This seems pretty moot to me because i'm more a buyer than a seller. I rarely have a cash balance. The odd time I sell something online, which is once every few years, I immediately withdraw or spend the balance.

This seems to be an added cost directed at sellers, as sellers are the only ones most likely to have a balance? When you buy stuff it takes it directly off your payment methods. If it gets refunded it goes right back to your payment method.
Jr. Member
Dec 12, 2010
172 posts
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Toronto
PayPal constantly coming up with reasons you shouldn't use it. Impressive!
Deal Addict
Apr 10, 2017
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Just start using them for your AliExpress purchases. I dont see an issue with this
Sr. Member
Sep 13, 2003
550 posts
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Or just have one of your monthly subscriptions go through paypal...netflix, disney, spotify. I already do this so i only have to update my cc info at one place when it expires
Newbie
Feb 25, 2018
22 posts
17 upvotes
This is all a dirty scumbag rouse to get the $1.95 that they had to pay people in a class action suit settlement back

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.
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Oct 21, 2015
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BobSagget wrote: I would hope people are not treating their PayPal account like their own bank account and keeping money in there for a long period of time. If you're someone who does this, just google something like "never leave money in paypal" and you will find a bunch of horror stories about why it's a bad idea.
Some people finding their account balance randomly frozen and not accessible for 6+ months.

Never trust those scumbags. If you are not going to immediately use the money, transfer it out.
i used to leave $1000 in there but not anymore.
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
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Nov 28, 2016
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Ill cancel, i dont even know the last time I used it. Not worth my time. Same as those points cards you dont use and they let your points expire
Sr. Member
Dec 9, 2001
792 posts
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Vancouver
My account has been permanently limited 10 years ago.
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...
Deal Guru
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Apr 10, 2011
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BrianJM wrote: (...) 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. (...)
Add $14 to your PayPal account then move $15.95 to your bank account?
Sr. Member
Jul 24, 2012
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Temporel wrote: Add $14 to your PayPal account then move $15.95 to your bank account?
So there should be no inactivity fee if there is no balance on the account?
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Dealfinder111 wrote: So there should be no inactivity fee if there is no balance on the account?
chemicalxv wrote: (...) Also you don't get charged if your account balance is $0.(...)
Could you reference that? TIA.
Newbie
Feb 25, 2018
22 posts
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Temporel wrote: Add $14 to your PayPal account then move $15.95 to your bank account?
I wonder how much in service fees they would charge for that. PayPal just seems to be the new douchebag bank on the street, no longer satisfied making money on customer deposits but instead needs to be bending people over and reaming them in service fees. Reminds me of advise my Dad used to give me. Don't put your money into a bank account. Instead invest it in the bank's stock. The return is MUCH higher.

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.
Last edited by BrianJM on Aug 20th, 2021 9:55 pm, edited 1 time in total.

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