Set up a recurring payment in three steps
To create a recurring payment on PayPal, you log into your account, go to Settings, select Payments, then Automatic Payments, and authorize the merchant. The merchant (the business or person you pay regularly) initiates the setup, and you approve it from your PayPal inbox or email. Once approved, PayPal charges your linked bank account, debit card, or PayPal balance on the schedule you both agree to—weekly, monthly, yearly, or whatever interval the merchant offers.
The process takes about five minutes if the merchant has already sent you a payment request. If you are setting this up yourself because a business asks you to, you will need the merchant's PayPal email address or their payment link. PayPal does not let you create a recurring payment to someone who has not registered as a merchant or set up the infrastructure to receive them.
Recurring payments are different from one-time transfers. Once you authorize one, PayPal will charge you automatically until you cancel it. You can stop it at any time from your account settings, and the merchant cannot charge you after you cancel—though they may still send you reminders to re-authorize.
Key Takeaways
- The merchant sends you a payment request or link; you approve it from your PayPal inbox, and charges begin on the date and schedule you both set.
- PayPal pulls money from your linked bank account, debit card, or PayPal balance—whichever you select during setup.
- You can cancel a recurring payment anytime from your Automatic Payments settings, and no further charges will occur after cancellation.
- If a payment fails because your card expired or your account has insufficient funds, PayPal will retry it, usually within a few days.
- You receive an email receipt for every charge, so you can track what was paid and when.
How the merchant starts the process
Most recurring payments begin when the merchant sends you a request. This happens when you sign up for a subscription service (like a streaming app, gym membership, or software tool), pay an invoice that the business marks as recurring, or authorize a bill-pay arrangement with a utility or loan servicer. The merchant uses PayPal's subscription or billing tools to create the request and sends it to your email address or PayPal account.
You will see the request in your PayPal inbox under the Requests tab, or you will receive an email with a link to approve it. The email will show the amount, the frequency (daily, weekly, monthly, etc.), the start date, and the merchant's name. Click the link or log into PayPal and select Approve. You will then choose which payment method to use—your bank account, debit card, or PayPal balance—and confirm the setup.
Some merchants, like utilities or loan services, may ask you to set up the recurring payment directly on their website instead of through PayPal. In that case, you enter your PayPal email address on their payment page, and PayPal handles the authorization behind the scenes. Either way, you will receive a confirmation email from PayPal once the recurring payment is active.
What payment method PayPal will use
During setup, you choose which of your linked payment methods PayPal charges: your bank account, debit card, or PayPal balance. If you have multiple cards or bank accounts linked to your account, you can pick which one to use for this specific recurring payment. PayPal will charge that method on the schedule you agreed to—for example, the 15th of every month or every Friday.
If your chosen payment method fails (your card expires, the bank account closes, or there are insufficient funds), PayPal will attempt to charge you again within a few days. If the retry fails, PayPal will notify you by email and may pause the recurring payment. You will need to update your payment method or add a new one to resume charges.
You can change which payment method PayPal uses for a recurring payment at any time. Log into your account, go to Settings, select Payments, then Automatic Payments, find the recurring payment in the list, and click Edit. Select a different payment method and save the change. The next charge will use the new method.
Canceling a recurring payment
To stop a recurring payment, log into your PayPal account and go to Settings. Select Payments, then Automatic Payments. You will see a list of all active recurring payments, including the merchant name, amount, and frequency. Find the one you want to cancel, click the three-dot menu next to it, and select Cancel. PayPal will ask you to confirm, and once you do, no further charges will occur.
Cancellation takes effect immediately. If a charge was scheduled for today or tomorrow, it may still go through because PayPal processes payments in batches. Check your email for a confirmation that the recurring payment has been canceled. If you see a charge after you cancel, contact PayPal's Resolution Center to report it as unauthorized.
Some merchants will send you a reminder email asking you to re-authorize the recurring payment after you cancel. Ignore it unless you want to restart the payments. The merchant cannot charge you again without your approval.
What happens if a payment fails
If PayPal cannot charge your payment method—because your card expired, your bank account was closed, or there are insufficient funds—PayPal will retry the charge within a few days. You will receive an email notification that the payment failed and that PayPal is retrying. If the retry succeeds, you will get a receipt as usual.
If the retry fails again, PayPal will pause the recurring payment and send you another email. At this point, you need to update your payment method or add a new one. Log into your account, go to Settings, select Payments, then Automatic Payments, and click Edit next to the failed payment. Choose a different payment method and save. PayPal will attempt to charge the new method on the next scheduled date.
If you do not update your payment method, the recurring payment will remain paused. The merchant may contact you asking you to fix the problem, but PayPal will not charge you without a working payment method on file. This is different from a one-time payment, where a failed charge simply does not go through.
Tracking and disputing recurring charges
PayPal sends you an email receipt every time a recurring payment is charged. The receipt shows the merchant name, the amount, the date, and a transaction ID. You can also view all your recurring charges by logging into PayPal, going to Activity, and filtering by date or merchant. This makes it easy to spot unauthorized charges or billing errors.
If you see a charge you did not authorize, or if a merchant charged you the wrong amount, you can dispute it through PayPal's Resolution Center. Go to Activity, find the transaction, click it, and select Report a Problem. Choose Unauthorized Transaction or Billing Error, describe what happened, and submit. PayPal will investigate and may refund you while they look into it. The process usually takes 10 business days, though complex cases can take longer.
If a merchant charged you after you canceled the recurring payment, report it as unauthorized. PayPal takes this seriously and may suspend the merchant's account if they repeatedly charge customers after cancellation.
Frequently Asked Questions
Can I set up a recurring payment to a friend or family member?
No. Recurring payments only work with merchants who have registered with PayPal's subscription or billing system. You can send money to friends and family one time using PayPal's standard transfer, but you cannot set up automatic recurring transfers to them. If you want to send someone money regularly, you will need to do it manually each time or use a different service that supports peer-to-peer recurring payments.
What if I want to pause a recurring payment temporarily instead of canceling it?
PayPal does not have a built-in pause feature. Your only options are to cancel the recurring payment or contact the merchant and ask them to pause it on their end. If you cancel, you can always re-authorize the same recurring payment later by asking the merchant to send you a new request. Some merchants, like subscription services, may let you pause your account directly on their website without canceling.
How long does it take for a recurring payment to start after I approve it?
The first charge usually occurs on the date the merchant specified when they sent you the request. This might be immediately, at the end of the month, or on your next billing cycle date. Check the confirmation email from PayPal—it will show when the first charge is scheduled. Subsequent charges follow the frequency you agreed to (weekly, monthly, etc.).
Can I change the amount of a recurring payment?
No. You cannot change the amount through PayPal. If the merchant charges a fixed amount each time, you would need to cancel the recurring payment and ask the merchant to send you a new request with the updated amount. Some merchants, like utilities or variable-rate services, may allow you to adjust the amount directly on their website, and PayPal will charge whatever amount they submit.
What if my bank account or card information changes?
Update your payment method in PayPal's Settings before your next scheduled charge. Go to Settings, select Payments, then Automatic Payments, click Edit next to the recurring payment, and choose a new payment method. If you do not update it and the charge fails, PayPal will pause the recurring payment and ask you to fix it. You have a few days to do so before the merchant may contact you about the missed payment.