How to Cancel a PayPal Payment

According to Forrester, PayPal still holds the title of the most popular digital payment method in the US. With such a high transaction volume, mistakes are simply inevitable. Like thousands of other users, you may one day enter the wrong recipient data, or even fall victim to a scam. Can you cancel a PayPal payment in situations like that? Well, it depends. Some transactions can be canceled almost instantly, while others are impossible to reverse. Keep reading the article for detailed instructions and eligibility criteria.

Understanding PayPal Transactions

Before we discuss the PayPal cancel pending payment procedure, let’s deal with the basics. Every time you use PayPal to send, receive, or move money between accounts, you initiate a transaction. This includes everyday activities, such as making online purchases, sending money to a friend, or receiving payment for your work. Each transaction contains all the info about its associated payment, and can be tracked at any time if the sender wants to check its status.

What are PayPal transactions and their statuses?

Your success in cancelling a pending PayPal payment depends on the transaction’s type and status. Here are two main types of PayPal payments:

1. Personal payments. These are the ones you send to friends or family to split a bill, pay rent, or send a gift (available under “Sending to a friend”). The service doesn’t charge any fees for this transaction type if you use your PayPal balance. However, PayPal's Purchase Protection doesn't cover such payments.
2. Goods and services payments. You use this type when you pay online for items or services. PayPal charges sellers a small processing fee for using the platform, but keeps it free for you. These payments are covered by PayPal's Purchase Protection, which helps resolve any disputes or issues related to the transaction.

There are also automatic payments, like when you pay for subscriptions like YouTube Premium or Netflix with PayPal.

Every transaction also has a status, which is essentially a label that indicates the current location of your funds.

1. Pending: The transaction is under review. The payment will be sent to the recipient once its funding source confirms it. For electronic checks, approval can take up to seven business days. During this time, the payment keeps its status.
2. On hold: The funds are on hold, often because a dispute has been filed or because the payment requires extra checks. You can find the details in a notification email PayPal will send you.
3. Refunded: The recipient returned the payment. If you paid with a credit card, the money will go back to that card, which can take up to 30 days.
4. Returned: The funds were sent back because the recipient didn't claim the payment within 30 days. In some cases, you can also manually reverse unclaimed payments before the automatic 30-day return.
5. Completed: The transaction was successful, and your recipients have received the funds.
6. Held: The transaction is currently being reviewed; the payment has been placed on hold.
7. Temporary hold: The system reserves funds during the authorization process. You’ll be able to use or withdraw money after authorization is complete.
8. Unclaimed: The transaction was successful, but the recipient has yet to claim the money.
9. Denied: This status signifies that the recipient has rejected the payment, and the money will be returned to the sender's account.

Which PayPal Transactions Can Be Canceled

So, if you are tormented by the question: “Can I cancel a PayPal payment?”, the answer is yes, as long as the transaction in question is either Pending or Unclaimed. Typically, you have a few days until a pending transaction is fully processed, after which it can stay Unclaimed for up to 30 days (as long as the recipient doesn’t claim it). You can also easily stop upcoming automatic subscription payments, but not those that have already been processed. Once the payment is completed, you can’t cancel it.

Can you cancel a PayPal payment if you sent it as a Friends and Family type? No, you can’t, as it is processed instantly. Keep in mind that these payments are not protected, and you can’t open a dispute in the PayPal Resolution Center. That’s why you should use this payment type only when dealing with people you know.

If you wish to request a refund for a purchase, please contact the seller directly or open a dispute in the PayPal Resolution Center.

Common Reasons for Canceling PayPal Transactions

Now that you know how to cancel a PayPal payment, here are some common reasons why you might want to do so:

• Mistyped details: You sent the payment to the wrong email address or account.
• Duplicate payments: You’ve sent money twice by mistake.
• Wrong amount: You’ve accidentally entered an incorrect payment total during checkout or transfer.
• Subscription changes: You want to cancel a subscription payment.
• Suspicious activity: You don’t remember making the transaction, and suspect someone has access to your account.
• Item unavailability: You might have ordered a discontinued item, and the seller agrees to return the money.
• Disputes: You might be unsatisfied with the product quality or delivery time, and request a refund.
• Change of mind: You might just decide not to buy something you’ve already ordered before the seller accepts your payment.

For more details, we suggest checking out our article on the PayPal goods and services fee, which describes how it works.

How to Cancel a PayPal Transaction

Having addressed the question, "Can I cancel a pending payment on PayPal?" let's discuss the particular steps you need to take. Regardless of your reason for canceling the transaction, the process is basically the same:

1. Start by logging in to your account. Go to the PayPal homepage, enter your username and password, and then click on the “Log In” button to access your account.
2. Click on the “Activity” button, and you will be redirected to your transaction history.
3. Scan through the list of transactions to find the pending payment you wish to cancel. PayPal categorizes transactions based on their status, so look for the transactions labeled Pending or Unclaimed.
4. After identifying the payment you wish to cancel, click on it to view more details and available options. Within the transaction details page, you should see a “Cancel” button.
5. You will be asked to confirm the cancellation. Take a moment to review all the details and ensure you are canceling the correct transaction. If you are certain, click the “Cancel Payment” button to proceed.

How to Cancel a PayPal Payment to an Unverified Account

If you’ve sent money to someone whose PayPal account isn’t verified, here’s how to quickly cancel the payment.

What Happens to the Payment?

When you send money to someone who doesn’t have a verified PayPal account, the payment will be marked as "Pending" or "Unclaimed" as with other transactions. This means the money won’t be instantly transferred to the recipient.

If the recipient doesn’t verify their account in 30 days, PayPal will automatically cancel the transaction. Refunds to bank accounts arrive within 5 business days, but those to a credit or debit card take up to 30 days.

How to Cancel a Pending Payment on PayPal?

If you need to cancel the payment as soon as possible, you can do so manually. Go to the platform’s website, and follow these steps:

• Open the Activity Tab.
• Find and press the "Cancel" button under the disputed payment.
• Follow the step-by-step instructions to complete the process.

You can also cancel the payment via the provider’s app:

• Press the "Wallet" icon.
• Hit the Activity button.
• Pick the required payment, then press to open.
• Choose “Cancel”.

Steps to Take When You Can’t Cancel a PayPal Payment

If the Cancel option isn’t available because the payment has been processed, try these steps to resolve the issue.

Contact the Seller

Although you may not be able to cancel a payment once it has been completed, you can still request a refund by reaching out to the seller. To get their contact details, navigate to your "Activity" page and find the seller’s contacts in your payment history.

Open a Dispute

You can file a dispute if the seller doesn't reply to your messages. Here’s how to cancel a PayPal transfer if all else fails:

1. Tap on the transaction you wish to report after selecting Activity.
2. After you've reached the bottom, tap “Report a Problem”.
3. After choosing the issue type and adding any pertinent information, click Submit.

If you wonder, “How do I cancel a PayPal payment via dispute on the platform’s website?”, follow these steps:

1. Open the Resolution Center page.
2. Click on "Report a Problem."
3. Select the payment you wish to reverse.
4. Choose the cause of your dispute (the billing issue, the item was not received, or the product or service was not as expected).
5. Click "Submit" after adding any necessary details.

If you can’t come to an agreement with the seller, or if they simply don't respond to your messages, you can file a claim within 20 days of making the purchase. Once you do, it’s up to PayPal to resolve the issue.

Report Unauthorized Transactions

If you believe someone has accessed your account without permission, report it to PayPal to cancel payment through customer support or the Resolution Center:

1. Open the Resolution Center tab.
2. Choose “Open a dispute for a transaction."
3. Click "Continue" after selecting the payment you want to cancel.
4. Select "I want to report unauthorized activity."
5. Follow the further instructions on the screen.

What Happens After Canceling a PayPal Transaction?

Now that you know how to cancel a pending PayPal payment, let’s discuss some related questions, like what happens after you confirm the cancellation and how long it takes to receive money back:

• For payments made from a PayPal balance: Once the transaction is canceled, the refund amount will be credited back to your account within one business day.
• For payments made using a credit/debit card: Refunds are typically returned to your PayPal account balance rather than directly to your credit card. However, in some cases, PayPal may issue the refund to the original payment source, with funds credited back to your bank account within 3–5 business days.

Note that the refund processing times can vary depending on the seller’s refund policies and your payment method. It’s always advisable to review the transaction details and contact PayPal support or the seller directly if you have any specific inquiries or concerns regarding refunds.

Conclusion

So, now you know how to cancel a payment on PayPal. This feature gives you some much-needed leverage to address scams, dishonest sellers, or simple human errors. Always carefully check the email address and the amount to be sent before finalizing your transactions, and set up alerts to spot any issues as soon as they emerge. Still, having a refund option makes using PayPal easier, safer, and much less stressful.

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