How to refund a transaction on PayPal?

In this article:

How to issue a refund on PayPal

Preventing refund requests

Avoid fraudulent refunds

How to handle disputes with buyers


How to issue a refund on PayPal

Important! The information provided in this article was gathered by Sellfy, from PayPal's site

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 Activity at the top of the page > All Transactions
  3. Select the payment you want to refund > Issue a refund
  4. Go to Total Refund Amount and enter the amount you want to refund (You may have the option to refund a partial amount of the payment)
  5. Click Issue Refund
  6. You'll be directed to a page confirming that your refund has been sent

Note: You can refund payments that are CompletedPendingCleared, 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.


Preventing refund requests

Customers may request a refund if they're not satisfied with their purchase. As a product seller, you should issue refunds if a customer is not pleased with the contents of your products. However, there are a number of things you can do to ensure happy clients and prevent refund requests as much as possible. 

  • Make sure you have an excellent product presentation - buyers should be able to install/apply and work with the product without further assistance just by reading the description or any added instructions. 
  • Providing refund information is highly recommended. Please don't state a No Refunds policy in your account - all buyers can get a refund via PayPal, without involving you.

Regardless of your efforts to prevent refund requests, some customers may still be unhappy with their purchase and will seek a refund. If a customer does request a refund it is up to you and then later up to PayPal to judge if a customer should receive a refund. 


Avoid fraudulent refunds

Refunds can be requested based on unreasonable grounds and you need to be wary of such requests from buyers. In most of these cases, buyers are trying to get your products free of charge.

  • Be attentive when customers request refunds - find out the reason for why they're claiming their money back.
  • If you suspect fraudulent activity from the buyer make sure to communicate this to PayPal as soon as possible and provide any type of proof supporting your position. 
  • Collect proof: the product description clearly stating instructions and functionality of the product and/or a screenshot of download attempts that may have been used up by the customer.

We do offer download details and history in the order, along with manual control for stopping downloads, called "restricting downloads". If you were to get another PayPal case like this, you could restrict the order until payment has gone through. To do this:


How to handle disputes with buyers

For digital products, Sellfy provides you with access to order information that you can use as supporting evidence in dispute cases. For example, if the customer has attempted to download product files prior to requesting a refund, you will be able to verify this information yourself and use it as proof in a dispute with PayPal or the customer's bank. The details provided will include the date and time the customer has accessed the product files.

Important! Sellfy cannot contact PayPal or your bank on your behalf to resolve disputes.

To access the status information of any particular order, you'll follow these steps:

  1. Log in to your Sellfy account
  2. Navigate to Orders > search orders by email or product in the search bar
  3. Select the relevant order > scroll down to Activity log 
  4. Take a screenshot of the Activity log and present as evidence to support your position in a dispute

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