PayPal to start charging Canadian users an 'inactivity' fee

Starting November 2021, PayPal will begin implementing the fee, charging accounts that have not seen any activity over a course of a year. However, the ecommerce company said the fee won't be applied to accounts that carry a zero balance or are in the red.

If a user carries a balance of USD 7 and has let the account inactive over a course of 12 months, PayPal will charge an inactivity fee of USD 7 on the account. The maximum fee that would be applied to an inactive account is USD 20.

If users fail to log in before the fee goes into effect, they will be notified via email before it's applied to the account, advising the PayPal client of the inactivity. The warning email ‘will inform customers about how to use the balance available on the account’ before the fee is applied, the spokesperson said. A user can withdraw, donate or make a transaction to avoid the new penalty.