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You can use the procedure and information in this section to cancel unclaimed payouts and understand payout reversals.

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Cancel payout item

You can cancel a payout item only if its status is UNCLAIMED. Use the PayPal business account dashboard or the Payouts API to cancel unclaimed payout items. To implement payment cancellation functionality, you can use the Dashboard or the API.
Unclaimed payouts expire in 30 days, and PayPal returns the money to your PayPal account.
  • Dashboard
  • API
  1. Log into your PayPal business account.
  2. Select Activity > Transactions > All Transactions.
  3. On the Transactions page:
    1. Select Email address from the drop-down list.
    2. Enter the recipient’s email address in the search box.
    3. Select Filter.
    4. Select the date range.
    5. Select Apply Filters. The search results display the transaction list that matches your criteria.
  4. Select the title of the unclaimed payment you want to cancel.
  5. On the details page, select Cancel and follow the on-screen instructions.

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Understand payout reversals

PayPal cannot reverse payments that a payer sends to an incorrect email address or phone number. However, if the status of the payout item is UNCLAIMED, a payer can cancel the payout item and create a new payout with the correct recipient details. If not, all unclaimed payouts expire in 30 days, and PayPal returns the money to the payer’s PayPal account.