How do I issue a full or partial refund?
You can issue a full or partial refund within 180 days from the transaction date as long as its status is “Completed,” “Pending,” or “Cleared.”
Here’s how to issue a refund from the Activity page:
1. Go to Activity.
2. Click the transaction you want to refund and then click Issue a refund.
3. For ‘Total refund amount’, enter the amount you want to refund, (you may have the option to refund a partial amount of the payment) and click Issue refund.
Here’s how to issue a refund using the “Issue a refund” widget:
1. Under “Issue a refund”, type in the transaction ID, invoice ID or the buyer’s email.
2. Enter the amount you want to refund and click Send.
If you refund a payment for goods or services, there are no fees to issue the refund, but the fees you originally paid as the seller are not returned to you. The amount of the refunded payment will be deducted from your PayPal account.
Any tax or commission charged on the original transaction will be returned back to you, fully or partially, based on the type of refund.
If the transaction only allows for a full instead of partial refund, it’s likely the buyer used a coupon or gift certificate. When coupons are applied to transactions, full refunds are the only option. If you’ll only provide a partial refund for such a transaction, you can initiate a new payment on the Send Money page to send your buyer the refund amount that you’ve agreed upon.
The refund is paid from your PayPal account balance. If your PayPal account balance does not have enough money in it, the entire refund will be issued from the primary bank account linked to your PayPal account. Depending on your bank’s processing time, it may take up to 5 business days to process your refund even if the refund status shows “Complete” in your PayPal account.
Once a refund has been sent, it can’t be canceled.
To learn more about the transaction fees, click Fees at the bottom of any PayPal page.