It should be noted this inactivity fee will not just be levied on UK customers, it will be applicable across Europe.

As PayPal confirm in their updated agreement: “The inactivity fee applies to users registered in United Kingdom (UK), Bulgaria, Cyprus, Czech Republic, Estonia, Gibraltar, Greece, Guernsey, Hungary (Corporate Customers only) Isle of Man, Jersey, Latvia, Liechtenstein, Lithuania, Romania, San Marino, Slovakia, and Slovenia.

The provision and inactivity dee however will not apply to Irish registered users and/or to personal accounts registered in Hungary.

For those wanting to avoid this fee, they can simply log into their account and this will reset the 12 month time limit.

Additionally, transferring money held within a PayPal account to a regular bank account will halt the fee.

Of course, using a PayPal account for regular purchases will also have the same effect.

Full details on the changes can be found on PayPal’s website.