What is a pre-approved payment on PayPal and how to use it for your business? — How to cancel the pre-approved payment.

A pre-approved payment on PayPal is an option a business can set up to receive recurring payments. Indeed, when you have a product that requires payment monthly or annually, it can be complicated to follow. This is the reason why the solution of PayPal or other gateways is very useful. In this article we look at what it is, how it works. If you are a business, we will explain how to integrate it on your website. Furthermore, if you are an individual, we will explain to you how to better manage direct debits. For an individual, we will talk in particular about activation and deactivation.

What is a pre-approved payment on PayPal or other payment options?

Pre-approved payment is often referred to as when you authorize a company to automatically take money from your account. If, for example, you have to pay telephone, internet or electricity bills, you can ask your suppliers to activate the automatic payment option. This likely saves you from paying your bills late or wasting time each month making payments.

However, this can be disadvantageous if you don't currently have money in your bank account (or PayPal account ).

Some advantages for a consumer.

If you are a consumer, pre-approved payment can benefit you in several ways:

• Little risk of forgetting to pay your bills. When your suppliers take money automatically, you no longer have to worry about whether you've paid your invoices.
• Relatively stable credibility. In Western countries in particular, your credibility depends on your ability to pay your bills. So, paying them on time helps increase your credibility.
• Less risk of service interruptions. Indeed, some suppliers are very particular about payment deadlines. Therefore, paying late can cause stoppages.

Some disadvantages for a consumer.

The pre-approved payment sometimes causes several problems including:

• You continue to pay bills even if you no longer consume. For example, you may, after checking, realize that you are still paying for services that you have not used for a long time.
• A risk of abuse on the part of the supplier. Unexpectedly, some suppliers increase their prices without informing you.
• A waste of opportunity. Some products drop in price with competition. However, pre-approved payment on PayPal or other platforms does not help you realize the changes in the market.

A pre-approved payment for a business

There are several advantages for businesses to set up automatic payment. Indeed, it helps to:

• Receive payments without having to constantly contact customers . After a scheduled interval of time, you receive payment from your customers without any additional action on their part or yours.
• Better plan your entries . With permanent and constant inputs, you can better plan the management of your business.
• Save time and money. Monitoring customers requires resources. For a business with hundreds or thousands of customers, this may require recruiting staff to call or email.

How to set up pre-approved payment on PayPal (For a business)

To set up automatic payment on PayPal, you must have a PayPal for Business account and a management website or application. If applicable, follow these steps:

1. Log in to your PayPal account, and click on “Pay and get paid”
2. From the menu, select the “Subscriptions” option to your right below “Accept Payments”.
3. You must then complete the form by following the steps that PayPal offers.
4. After completing and validating the form, PayPal will generate a code that you can then add to your website

When the plan is activated, add it to your website. So when customers visit your web page, they can click a button to place an order and accept automatic payments.

How to manage automatic payments (Consumers)

If you have accepted automatic (or pre-authorized) payments on your PayPal account, you can always deactivate this option at any time. Below are the steps to follow to do so:

• Go to your PayPal account and click on your name or business name in the top right corner of the page.
• Next, click Account Settings.
• PayPal will direct you to a page where you will see several links to your left.
• Click on “On-Site Payment” and “Update” (to the right of “My Pre-Approved Payments”).

You will then see the list of your suppliers. On this page, you will be able to cancel the accounts of companies which will no longer have to automatically withdraw money from your account.

In conclusion,

Adding a PayPal payment method to your site is really easy. If you have any questions, we invite you to contact us .