What a recurring payment is and why you'd use one
A recurring payment on PayPal is a payment that happens automatically on a schedule you choose — weekly, monthly, yearly, or on any interval you set. Instead of logging in and paying the same bill every month, PayPal withdraws the money from your account on the dates you pick. The money goes to the same person or business each time.
You might use this for a gym membership, streaming service, insurance premium, rent, loan payment, or any bill that stays the same amount and comes due regularly. Once it's set up, you don't have to remember the due date or take action each time — PayPal handles it.
The person or business receiving the payment is called the merchant. Some merchants set up the recurring payment on their end (you authorize it once, they charge you on their schedule), and sometimes you set it up yourself through PayPal to pay them directly.
Key Takeaways
- You can set up a recurring payment through PayPal by going to Settings, selecting Payments, and choosing Manage Automatic Payments.
- You need the merchant's PayPal email address or business name, the payment amount, and how often you want to pay (weekly, monthly, etc.).
- PayPal will withdraw money from your linked bank account, debit card, or PayPal balance on the dates you choose.
- You can pause, change the amount, or cancel any recurring payment at any time through your PayPal account settings.
How to set up a recurring payment you control
If you want to initiate the recurring payment yourself (rather than the merchant setting it up), log into your PayPal account on a computer or the PayPal app. On the website, click the gear icon in the top right corner to open Settings. On the app, tap the menu icon (three horizontal lines) and select Settings.
Once you're in Settings, look for the Payments section. Click or tap Manage Automatic Payments. This page shows any recurring payments you've already set up and gives you the option to create a new one. Select the button to add a new automatic payment.
You'll be asked for the merchant's information. Enter their PayPal email address or the name of their business. Then enter the payment amount (the exact dollar figure you want to send each time) and choose your payment frequency — weekly, every two weeks, monthly, quarterly, or a custom interval you specify. Set the start date for the first payment, and PayPal will calculate the rest of the schedule for you.
Review the details carefully before confirming. Once you submit, the recurring payment is active, and PayPal will begin withdrawing the amount on your chosen dates.
When the merchant sets up the recurring payment
Many businesses — subscription services, insurance companies, utilities — set up the recurring payment on their own system. When you sign up with them, they ask for your PayPal information and permission to charge you regularly. This is sometimes called setting up a subscription or automatic billing.
You authorize the payment once, usually by clicking a button that says "Authorize" or "Agree" on their website or app. PayPal then sends you a confirmation email. The merchant controls the schedule and amount, and they charge you according to their terms.
Even though the merchant set it up, you can still cancel or pause it through your PayPal account. Go to Settings, Payments, Manage Automatic Payments, find the merchant's name, and select Cancel or Pause. The merchant may also let you cancel directly through their website, but canceling in PayPal ensures the payment stops.
Which account the money comes from
When you set up a recurring payment, PayPal needs to know where to pull the money from. You can choose to pay from your PayPal balance (money already in your PayPal account), a linked bank account, or a linked debit or credit card.
If you have a PayPal balance and choose to use it, PayPal will withdraw from that balance first. If your balance runs out, PayPal will try to pull from your backup payment method — usually a bank account or card you've linked. If none of these have enough money when the payment is due, the payment will fail, and you may be charged a late fee by the merchant.
To avoid failed payments, make sure your linked bank account or card has enough funds a day or two before each payment date. You can check which payment method PayPal will use by going to Settings, Payments, and reviewing your payment sources.
Changing or stopping a recurring payment
You can modify a recurring payment at any time. Log into PayPal, go to Settings, select Payments, and open Manage Automatic Payments. Find the payment you want to change and click on it.
From here, you can change the payment amount, the frequency (how often it happens), or the payment date. You can also pause the payment temporarily — it will stop charging you, but the authorization stays active, so you can restart it later without setting it up again. To pause, select the pause option; to restart, select resume.
If you want to end the recurring payment completely, select Cancel. PayPal will stop charging you when ready, and the merchant will no longer have permission to bill you through PayPal. Some merchants may also send you a confirmation email when you cancel.
What happens if a payment fails
If PayPal tries to process a recurring payment and your account doesn't have enough funds, the payment fails. PayPal will usually try again a few days later. If it fails a second time, PayPal will notify you by email and may pause the recurring payment to prevent repeated failed attempts.
When a payment fails, the merchant may charge you a late fee or suspend your service (for example, a streaming service might pause your account). Contact the merchant to let them know the payment failed and when you'll have funds available. You can also add funds to your PayPal balance or make sure your linked bank account has money, then ask PayPal to retry the payment.
To avoid this, check your PayPal balance or linked account a few days before each scheduled payment. If you know funds will be tight, you can temporarily pause the recurring payment and resume it when you're ready.
Security and protecting your account
When you set up a recurring payment, you're giving PayPal and the merchant permission to charge you on a schedule. PayPal protects this by requiring you to log in and confirm the setup, and by sending you a confirmation email each time a payment is processed.
Review your recurring payments regularly — at least once a month — to make sure you recognize all of them and that the amounts are correct. If you see a payment you didn't authorize, go to Manage Automatic Payments, cancel it when ready, and contact PayPal's Resolution Center to report it.
Use a strong, unique password for your PayPal account, and enable two-factor authentication (a security feature that requires a second form of verification when you log in). This makes it much harder for someone else to access your account and set up unauthorized payments.
Frequently Asked Questions
Can I set up a recurring payment if I don't have a PayPal balance?
Yes. PayPal will pull from your linked bank account or debit card instead. Make sure your bank account or card is linked to your PayPal account and has enough funds on the payment date. You can link a payment method in Settings under Payments.
What if I want to change the amount but keep the same merchant?
Go to Settings, Payments, Manage Automatic Payments, and click the merchant's name. Select Edit and change the amount. The new amount will explore to the next payment and all future payments unless you change it again.
Will PayPal notify me before each recurring payment?
PayPal sends you a confirmation email after each payment is processed, not before. If you want a reminder before the payment date, set a calendar alert on your phone or computer for a day or two before the scheduled date.
Can the merchant change the amount without asking me?
No. The merchant can only charge the amount you authorized. If they want to increase it, they must contact you and get your permission to update the recurring payment. If you see an unexpected charge amount, contact the merchant and PayPal when ready.
How long does it take to cancel a recurring payment?
Cancellation is when ready in your PayPal account, but the merchant may take a few days to process it on their end. If you're charged after you cancel, contact PayPal's Resolution Center to report it and request a refund.