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 issue a refund on PayPal

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 click Issue Refund

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 your product descriptions are well-written - 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.
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