How to Return a PayPal Payment to the Sender

PayPal enables your business to accept not only PayPal payments, but credit card payments as well. In time, you will encounter a situation where you must issue the buyer a refund and you can do this through your PayPal account on the PayPal website. When returning a PayPal payment, you can either return part of the payment or the entire payment regardless of the status of the payment, such as Completed, Cleared or Uncleared. When you initiate a refund, the money is instantly deposited back into the buyer's PayPal account.

Click "My Account" followed by "History."

Click "Details" next to the payment you want to refund.

Click "Issue a Refund." You only after 60 days from when you receive a payment to issue a refund.

Enter the refund amount if applicable. You also have the option of leaving an invoice number or a note with the refund. Click "Continue."

Verify the information is correct and click "Issue Refund." If you need to change any information, click "Edit."