Create a subscription payment in three steps
A recurring payment in PayPal is a transaction that repeats on a schedule you set—weekly, monthly, or yearly. You authorize PayPal to charge your account on those dates without asking you each time. The merchant (the person or business you're paying) sets up the subscription, you approve it once, and then the money moves automatically until you cancel.
The process differs slightly depending on whether you're the one paying or the one receiving payments. Most people arrive here because they need to pay a subscription—a gym membership, software service, or monthly donation. That setup happens on the merchant's website, not in PayPal itself.
Key Takeaways
- Recurring payments are created by the merchant on their website; you approve them through PayPal and then they charge automatically on their schedule.
- You can see all your active subscriptions in your PayPal account under Settings, and cancel any of them at any time without penalty.
- PayPal's Seller Protection does not cover subscription disputes the way it covers one-time purchases, so read the merchant's cancellation policy before you sign up.
- If a recurring payment fails because your card expired or your account has no funds, PayPal will retry the charge a few times before stopping.
How a merchant sets up a subscription for you to approve
The merchant creates the subscription on their own website or app using PayPal's subscription tools. They decide the amount, the frequency (weekly, monthly, quarterly, yearly), and the start date. When you check out, you'll see a button that says something like "Subscribe with PayPal" or "Set up recurring payment."
Click that button and you'll be taken to PayPal to log in and review the details. PayPal shows you the amount, how often it will charge, and when the first payment is due. Read this screen carefully—this is your only chance to see the full terms before you authorize it. Once you click "Agree and Subscribe" or the equivalent button, the merchant can charge you on that schedule.
Where to find and manage your subscriptions
Log into your PayPal account on the website or app. On the website, click the gear icon in the top right corner to open Settings. Select "Payments" from the left menu, then click "Manage automatic payments." You'll see a list of every merchant who has permission to charge you on a recurring basis.
Click on any subscription to see its details: the merchant name, the amount, the frequency, and the next charge date. From this screen you can also cancel the subscription immediately. PayPal does not charge a cancellation fee, and the merchant cannot charge you again after you cancel—though they may ask you to contact them directly to confirm.
On the PayPal mobile app, tap the menu icon (three horizontal lines) at the bottom right, then tap "Settings." Choose "Payments" and then "Manage automatic payments." The process is the same as on the website.
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 it—PayPal will retry the payment. The number of retries and the timing between them depends on the merchant's settings, but typically PayPal tries again within a few days, then again a week or two later.
If all retries fail, the subscription is suspended. The merchant may contact you directly to ask you to update your payment method. You can also log back into your PayPal account, go to "Manage automatic payments," and update the card or bank account linked to that subscription. Once you update it, the merchant can resume charging you.
During the time a subscription is suspended, you are not charged. However, some merchants will cancel the subscription entirely if payment fails too many times, so it's worth updating your payment method quickly if you want to keep the service.
How to update or change a recurring payment
You cannot change the amount or frequency of a subscription directly through PayPal. Those details are controlled by the merchant. If you want to change how much you're paying or how often, you'll need to contact the merchant directly—usually through their website's account settings or customer support.
What you can change in PayPal is the payment method. Go to "Manage automatic payments," click the subscription, and look for an option to update your card or bank account. This is useful if your card is about to expire or you want to use a different payment method for that subscription.
Canceling a subscription without contacting the merchant
You can cancel any recurring payment through PayPal without asking the merchant's permission. Log into your account, go to Settings > Payments > Manage automatic payments, find the subscription, and click "Cancel." PayPal will ask you to confirm, and once you do, the merchant loses permission to charge you.
The cancellation takes effect immediately. No charge will go through on the next scheduled date. However, some merchants require you to also cancel through their own website or app to close your account with them—PayPal's cancellation only stops the payment, not your account status. Check the merchant's cancellation policy to see if you need to take a second step.
Fraud protection and disputes for recurring payments
PayPal's Buyer Protection covers unauthorized transactions, but it treats recurring payments differently than one-time purchases. If you dispute a single charge from a subscription, PayPal may ask you to show that you tried to cancel the subscription first. If you can't prove you attempted to stop it, PayPal may deny your dispute.
This is why it's important to cancel through PayPal (or the merchant) as soon as you no longer want the subscription. Keep a record of the cancellation date. If a charge appears after you've canceled, that's a clearer case for a dispute, and PayPal is more likely to refund you.
If you believe a charge is fraudulent—meaning someone else set up the subscription without your permission—report it to PayPal immediately. Go to your Resolution Center, click "Report a Problem," and select the charge. PayPal will investigate and may refund you while they look into it.
Frequently Asked Questions
Can I set up a recurring payment directly in PayPal without going through a merchant's website?
No. Recurring payments are always created by the merchant using PayPal's subscription system. You cannot initiate a subscription from within PayPal itself. You have to start on the merchant's website or app, where they've set up the subscription option.
What if I cancel a subscription but the merchant charges me again?
Contact the merchant first to confirm the cancellation went through on their end. If they continue charging you after you've canceled through PayPal, report the charge as unauthorized in your PayPal Resolution Center. Keep a screenshot of your cancellation confirmation from PayPal as proof.
Do I get a reminder before a recurring payment charges?
PayPal does not send automatic reminders before each charge. Some merchants do, depending on their settings. If you want a reminder, set one on your phone's calendar for the day before the charge is due, or check your subscription details in PayPal a few days before the next scheduled date.
Can I pause a subscription instead of canceling it?
PayPal does not have a built-in pause feature for subscriptions. Your only options are to keep it active or cancel it. If you want to temporarily stop payments, you'll need to cancel and then re-subscribe later—though the merchant may charge a new setup fee or require you to start a new billing cycle.
What happens to my recurring payment if I close my PayPal account?
All active subscriptions are canceled when you close your PayPal account. The merchant will no longer be able to charge you. However, you should still contact the merchant directly to close your account with them, as closing PayPal only stops the payment method, not your service account.