In today’s post, we will learn how to cancel PayPal payments and pre-approved payments.
If you’re not living under a rock, you have heard of PayPal, the payment gateway system that revolutionized paying and receiving payments worldwide. According to a survey conducted in 2021 by Morning Consult, a Business intelligence Company, Paypal is the second most trusted brand globally.
Like all payment processing platforms, PayPal makes auto-payments and subscription payments. While PayPal is easy to use, secure, and has a fast transaction and fund clearance reputation. Sometimes, you may want to cancel auto-payments or a payment you accidentally sent to the wrong person. So what are the steps to follow for canceling a PayPal payment?
But before we dive into the main topic, let’s talk about PayPal and its primary uses briefly, and discuss why you should use it for your business transactions if your business has a global presence or global clients. You can get all the information you need from this article for startups and businesses that are new to tech terms. For the pros, you can always jump to the part you need the info about.
What is PayPal, and Why do you need it for your Business?
PayPal is an online payment system that was founded in 1998. PayPal has some big brand names using it – Apple, Dell Nike – to name a few. It is also used extensively by small businesses and individuals to accept payments.
PayPal operates in over 200 markets and supports over 100 currencies. It offers both personal and business accounts with unique features and fees. With a personal account, you can send and receive money, while a business account allows you to accept customer payments and manage your finances online.
PayPal has a straightforward interface. To get started, sign up for an account on the PayPal website. You must provide personal information, such as your name, address, and email, and link a funding source, such as a bank account or credit card.
Once you have a PayPal account, you can send money to anyone with an email address or mobile number. To send money, you need to log in to your account, click on the “Send & Request” tab, and enter the recipient’s email address or mobile number and the amount you want to send. You can also add a note or select a reason for the payment.
To receive the money, you must provide the sender with your email address or mobile number. The sender will then send the money to your PayPal account, and you can access the funds by logging in to your account.
Top Reasons it is the most trusted payment platform
With over 300 million active users across 200 markets, PayPal’s popularity as a payment gateway is unmatched. There are several reasons PayPal is so popular among businesses of all sizes, from startups to large enterprises. Here are some key factors contributing to PayPal’s popularity as a payment gateway.
1. User-Friendly Interface
One of the key reasons PayPal is so widely used is its user-friendly interface. The platform is easy to use and navigate, with clear instructions and intuitive features. This makes it easy for businesses to set up and manage their PayPal accounts and for customers to make payments using the platform.
2. Auto payments
PayPal allows auto-payments which makes it easy to run subscription-based businesses. This feature allows clients and service providers to keep receiving and providing services uninterrupted without the hassle of manually sending invoices.
3. Security
2-Factor Authentication and auto-logouts make it secure to use. The company is committed to protecting user information and transactions, using industry-standard encryption and fraud detection technologies to ensure that payments are processed securely. PayPal offers buyer and seller protection programs to help resolve disputes and protect against fraud. It also provides tips and resources for users to help protect their accounts and prevent fraud.
4. Mobile Compatibility
PayPal has a mobile app compatible with Android and iOS devices, making it easy for businesses to accept payments on the go. The app is user-friendly and includes all the features available on the desktop version of PayPal, making it easy to manage payments and view account information from a mobile device.
5. Integration with Third-Party Platforms
PayPal is integrated with many third-party platforms, including popular eCommerce platforms such as Shopify, WooCommerce, and BigCommerce. This integration makes it easy for businesses to accept payments through their existing eCommerce platforms, streamlining the payment process and making it more convenient for customers.
6. Multiple Payment Options
Credit cards, debit cards, and bank transfers – PayPal supports it all. This variety of payment options makes it easy for businesses to cater to a wide range of customer preferences, increasing the likelihood of completing a sale.
7. Global Reach
The widespread global presence of PayPal, with support for multiple currencies and languages. It makes it easy for businesses to accept payments from customers worldwide without setting up separate payment gateways for different regions. PayPal offers competitive exchange rates, making it more cost-effective for businesses to accept payments in multiple currencies.
8. Affordable Transaction Fees
While not exactly low, PayPal transaction fees are affordable, making it a cost-effective payment gateway for businesses, especially for medium-sized businesses. The fees depend on the type of transaction and the account type and are lower than the fee charged by credit card processing companies.
Canceling Payments in PayPal
Cancellations in PayPal can be because of the following reasons :
1. Payment Disputes
Payment disputes occur when a customer is dissatisfied with a product or service that they have received.
2. Unauthorized Payments
You may need to cancel a payment on PayPal if an unauthorized payment has been made from your account. This may occur if your account has been hacked or someone has accessed your PayPal login credentials. Here, canceling the unauthorized payment and changing your account password is important to prevent further unauthorized access.
3. Duplicate Payments
Duplicate payments can occur if you accidentally make the same payment twice or if a technical glitch causes the payment to be processed multiple times
4. Change in Plans
Sometimes, you may need to cancel a payment simply because your plans have changed. For example, if you had planned to purchase a product or service but no longer needed it, you may need to cancel the payment to avoid unnecessary charges.
5. Technical Errors
In rare cases, technical errors may cause a payment to be processed incorrectly or not be processed. If this occurs, it may be necessary to cancel the payment and reattempt the transaction to ensure it is processed correctly.
Given the above reasons, canceling payments in PayPal can be broadly categorized into 2 kinds – canceling a one-time payment and canceling ongoing pre-approved payments or subscriptions.
Cancellation can also be categorized into canceling unclaimed money and canceling completed payments.
Canceling unclaimed money i.e., money that you’ve sent most probably by mistake (entering the wrong email id or phone number) and which is still unclaimed by the recipient, is easy. Here’s how you can cancel unclaimed payments:
Canceling an unclaimed payment on the PayPal website:
- Go to Activity.
- Click Cancel under the payment in question.
- Follow the steps to cancel the payment.
Canceling an unclaimed payment on the PayPal app:
- Tap image Wallet.
- Tap Activity.
- Find the payment and tap to open.
- Tap Cancel.
Cancelling Completed Payments
Canceling a completed payment immediately is not an option because the seller already has the money. The best way to cancel the payment is to write to the seller and request a refund. The other way is to raise a dispute, which must be done within 6 months of the payment date.
Here are the steps to open a dispute on the PayPal website :
- Go to the Resolution Center.
- Click Report a Problem.
- Select the payment and click Continue.
- Select the reason for your dispute, such as:
- I didn’t receive the item purchased.
- The product or service is not as described.
- I have a billing issue
- Add any relevant information and click Submit.
You can open a dispute on the PayPal app by following these steps :
- Go to Recent activity and tap on the transaction you want to report.
- Scroll to the bottom and tap on Report a Problem.
- Select the type of issue you have, including any relevant details, and tap Submit.
To check the progress of a dispute or claim, visit the Resolution Center. You may need to provide additional information to strengthen your claim of getting the refund.
The other cancellation you may require information about is canceling an auto-payment. You can cancel automatic subscription payment by following these steps on the PayPal website:
- Go to Settings.
- Click the Payments tab.
- Click Manage Automatic Payments.
- Select the merchant.
You can cancel the automatic payment and change the backup funding source on this page.
To remove automatic payments on the PayPal app, follow these steps :
- Tap Wallet.
- Tap Automatic Payments.
- Tap the merchant to view or update.
- Tap Remove PayPal as your payment method.
Summary
Canceling transactions in PayPal is easy and without much hassle, except for completed transactions that might need additional effort. Apart from the other great features that contribute to the success of PayPal as a brand, the cancellations are very buyer-friendly, and the chances of getting back the money you sent by mistake or for services not received are very high.
Do you use PayPal? Do you find it convenient? Let us know.
