Reasons to Close Your PayPal Account in the Modern Era

PayPal, the world’s oldest payment platform, revolutionized online transactions by enabling users to make purchases without divulging their credit card details. Instead, users only needed a PayPal email account linked to their credit card or bank account. This approach offered enhanced security, especially when making purchases on potentially insecure websites. In case of issues like non-delivery, PayPal allowed users to dispute charges and obtain refunds.

However, as technology advanced, HTTPS encryption became a standard feature on reputable e-commerce websites, ensuring data security during transmission. Additionally, most online stores now handle complaints about product defects, non-functionality, or non-delivery effectively, often with the help of shipment tracking. Consequently, PayPal’s prominence has diminished over the years.


In early 2023, PayPal announced plans to charge fees to inactive account holders, incentivizing the platform’s use and clearing dormant accounts. Whether prompted by changing needs or these new policies, closing a PayPal account is a straightforward process.

How to Close a PayPal Account

If you have a balance in your PayPal account, the first step is to transfer it to your linked checking account. Visit the PayPal website, click on the “Transfer money” option, and provide your bank details for the transfer. Keep in mind that transferring funds to a credit card or a debit card for withdrawal is not possible.

Once the transfer is complete (which may take up to 3 days), you can proceed to close your account. To do so, follow these steps:

  1. Click on the gearwheel icon in the upper-right corner of the PayPal website.
  2. Navigate to the “Account” tab.
  3. Scroll to the bottom and locate the “Close account” button.

A window will appear, prompting you to select a reason for closing the account (this step is optional). Click “Close account” again to proceed. You’ll then be asked to enter your account password. If you’ve enabled two-factor authentication, you’ll receive a verification code on your mobile phone to confirm your ownership of the account being closed.

It’s important to note that unlike some platforms, PayPal does not offer the option to reopen a closed account. Once closed, you won’t be able to retrieve information such as payment history or saved accounts for recurring payments.

By following these steps, you can safely and permanently bid farewell to your PayPal account, whether you’re prompted by changing circumstances or the desire to avoid inactivity fees.