How to refund a transaction on PayPal?

As a product seller, you should issue refunds if a customer is not satisfied with the content. It is, however, up to you and then later up to PayPal to judge if a customer should receive a refund. 

Tips on avoiding fraudulent refunds

  • Make sure your product descriptions are well-written - the buyer should be able to install/apply and work with the product without your further assistance just by reading the description or any added instructions. Also, providing refund information is highly recommended. Please don't put 'no refunds' policy in your account - all buyers can get a refund via PayPal, without involving you.
  • If a buyer contacts you with a complaint or asking for a refund, don't ignore it. PayPal tends to resolve refund cases in favor of buyers (even more so for digital downloads), so it is in your interest to keep attentive whether or not the refund is fraudulent.
  • In case there is the suspicion that a customer is just trying to get your product for free, make sure you communicate this to PayPal as soon as possible. Send to PayPal whatever proof you can get to show that the product is fully functional and that the customer has downloaded the product. For example, from your Sellfy 'Orders' section, you may take a screenshot of the download attempts this customer has used up.

Here's how you can issue a full or partial refund for up to 60 days after you received the payment from the customer:

  1. Log into your PayPal account,
  2. Click Transactions near the top of the page,
  3. Click the payment you want to refund,
  4. Click Issue a refund,
  5. For "Refund amount," enter the amount you want to refund, and then click Continue,
  6. Review your information to make sure you entered the correct refund amount and then click Issue Refund.

Note: You can refund payments that are Completed, Pending, Cleared, or Uncleared. To make sure the buyer isn’t credited twice for the same transaction you cannot refund a payment when there’s a credit card chargeback associated with that payment.

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