Convenience is one of the top factors that have made landlords and renters shift away from cash payments to a digital basis. In fact, Dan Schulman of PayPal stated that the past few years have highlighted how digital payment systems have changed from being a handy perk to an essential service. So while nearly a third of US adults were using cashless payments in 2020, more than half of the population has now switched to digital means due to the convenience.
PayPal may make digital transactions look smooth and easy, but this isn’t always true— especially when you need to cancel a PayPal transaction. Here’s a quick guide on how to cancel a PayPal payment below:
How Can You Cancel a PayPal Payment?
How to Cancel a PayPal Transaction That’s Pending and Unclaimed
If your tenant is fast enough to catch pending payments on time, it’s much easier to cancel a PayPal transaction through their system. Before it’s claimed, they can cancel the payment by simply following these steps:
- 1. Log in to the PayPal system.
- 2. Click the “Activity” button on the top menu.
- 3. Scroll down to the transaction of concern on the list and click the cancel link next to it.
- 4. Click “Cancel Payment” in the confirmation window.
How to Cancel a Recurring PayPal Transaction
Is your tenant setting automated payments to ensure they don’t miss the due date? Since this hasn’t gone through the system yet, it’s easy to cancel a recurring PayPal transaction. They can cancel the transaction through these steps:
- 1. Log in to the PayPal system.
- 2. Go to the account overview.
- 3. Click the “Summary” button on the top menu.
- 4. Go to the “Pre-approved payments” section.
- 5. Click the “Manage pre-approved payments” button, then navigate towards the transaction of concern.
- 6. Select the cancel button next to the transaction and click the “Cancel Payment” button in the confirmation window.
How to Cancel a PayPal Transaction That’s Completed
Here comes the harder part. The steps above are possible only if the aforementioned payments haven’t been completed yet. Unfortunately, your tenant can’t cancel a PayPal transaction once the payment has been completed.
Since real estate transactions aren’t covered by PayPal’s protection claim, it’s impossible to cancel a PayPal transaction for rent payments. This can be a major problem, especially if they accidentally send the money to the wrong account or if you need to block a partial payment.
The Limitation of Cancelling PayPal Payments
It’s easy to cancel a PayPal transaction — when the transactions are in line with their cancellation terms. But suppose your tenant sends money to the wrong person, or you need to block a partial payment. In that case, it will be frustrating — in fact, impossible to cancel a PayPal transaction.
The digital payment platform does not offer payment protection for landlords, so you will have no way to resolve the issue or cancel the payment, even if you use an accountant to monitor your transactions and assess the financial data involved. These professionals are integral in checking if your transactions comply with various laws and regulations before ruling out the best course of action for your dispute. But unfortunately, PayPal decisions often favor the buyers, which in this case, are your tenants.
Mistakes on PayPal can’t be reversed because the tenant can’t cancel a PayPal transaction and must resort to retrieving misdirected payments on their own. This can be a costly risk for landlords, which is why more individuals are moving toward mobile payment platforms designed for rental payments like Rentdrop.
A real estate-specific platform like Rentdrop is a win-win for landlords and tenants since it accepts several forms of payments while also blocking unauthorized payments. As a result, Rentdrop provides the convenience that tenants look for while giving the security and control that landlords seek.
Canceling a PayPal Payment — In Conclusion
PayPal transactions may be easy, but it’s a different story when you have to cancel a PayPal payment for rent. Luckily, tenants and landlords can experience convenience, security, and ease by switching to Rentdrop.