In September, PayPal announced that they will charge UK users an annual inactivity fee if they didn’t use the payment service for the previous 12 months.
The new inactivity fee applies also applies to users registered in Bulgaria, Cyprus, Czech Republic, Estonia, Gibraltar, Greece, Guernsey, Hungary (business accounts only), Isle of Man, Jersey, Latvia, Liechtenstein, Lithuania, Malta, Romania, San Marino, Slovakia, Slovenia
“PayPal accounts with no activity in the previous 12 months will be charged an inactivity service fee. The fee will be £9, or the remaining balance on the account if less than £9. Accounts with zero balance won’t be impacted and this charge won’t result in any negative balance.”
Originally, PayPal said the inactivity fee would be £12, but since then it has revised the fee to £9 without any explanation.
To avoid the new account inactivity fee, PayPal recommends users take the following action:
- Log-in to your account; or
- Shop wherever PayPal is accepted; or
- Send money to friends & family, or vendors for goods & services; or
- Withdraw money from your account; or
- Donate to a charity with your account
With only hours to go before this fee will be assessed on dormant PayPal accounts in the UK, UK users are urged to at least sign in to their PayPal account by 11.59 pm on 15 December 2020 to avoid the new fee.
Users in the other countries where this fee applies, should check the latest user agreement for their country with details regarding this new fee.
There is no word if this fee may spread to more countries. However, in the US there is additional complexity regarding dormant account fees as laws may vary from state to state.
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