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PayPal · Chargeback reason codes

PayPal "Canceled recurring billing" dispute: what it means and how to win

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A PayPal Canceled Recurring Billing dispute (reason CANCELED_RECURRING_BILLING) means the buyer says they were charged after cancelling a subscription or recurring payment. It opens as a claim and you have 10 days to respond. Win it with the subscription agreement the buyer accepted and a record showing no cancellation arrived before the charge, or that the charge fell inside the cancellation terms. If they did cancel first, refund and send the refund ID.

Category
Cancelled subscription (Stripe category: subscription canceled)
Time limit to respond
10 days from when the dispute is opened; no reply means the case closes in the buyer's favour if it is escalated
Typical evidence
Subscription agreement, cancellation terms, dated cancellation record
Can it be prevented?
Yes: easy cancellation, clear renewal terms, stop billing on cancel
Who usually wins
Depends on the dates: billed after a cancellation, the buyer; before it, the seller

What PlatformDTC does

PlatformDTC records every PayPal dispute on the order from PayPal's webhook and an hourly re-check, and when a case reaches the claim or chargeback stage it can stop the subscription behind that payment (with auto-cancel on chargebacks switched on). You answer PayPal disputes in PayPal's Resolution Center. It also watches for buyers who cancel automatic payments inside PayPal and stops the matching subscription, so it is not charged again.

What it means

The buyer says the subscription or billing agreement was cancelled and the charge should not have happened.

Why customers file it

The buyer cancelled through PayPal or by email and the store kept billing, cancelled too late for this cycle, or forgot the subscription existed.

Evidence that wins

Send the items that answer the bank's exact question. Each one should be dated and tied to this order.

  • The subscription agreement the buyer accepted, including renewal and cancellation terms
  • A dated record showing no cancellation was received before the charge
  • Proof the renewal shipped or the service was used after the charge
  • If the buyer did cancel first: the refund ID

How to prevent it

  • Let customers cancel in one step and confirm it by email
  • Stop billing the moment PayPal reports the billing agreement or payment method was removed
  • State the renewal amount and frequency at checkout

For developers

In the PayPal Disputes API (GET /v1/customer/disputes/{id}) this case has reason CANCELED_RECURRING_BILLING. dispute_life_cycle_stage is INQUIRY, CHARGEBACK (PayPal's own claim stage, not a card chargeback), PRE_ARBITRATION or ARBITRATION, and dispute_channel is INTERNAL for a PayPal case or EXTERNAL when the buyer went to their card issuer.

Read seller_response_due_date for the deadline: if you do not respond by then, the dispute closes in the buyer's favour. Evidence files can be JPG, GIF, PNG or PDF, under 10 MB each and 50 MB per case. Evidence types: PROOF_OF_REFUND or OTHER (for example the subscription agreement). Listen for BILLING.SUBSCRIPTION.CANCELLED and VAULT.PAYMENT-TOKEN.DELETED webhooks to stop billing promptly.

Frequently asked questions

What does PayPal look at?
Whether a change to the billing agreement was disclosed, whether the charge followed the agreement's cancellation terms, and whether billing continued after a cancellation was accepted.
Is there a fee?
In the US PayPal charges a $15 dispute fee (or $30 at the high-volume rate) after a claim or chargeback is decided, but not for inquiries that are never escalated, cases settled with the buyer, cases covered by Seller Protection or cases decided in your favour.

Sources

Related

Payments library