How to Return a PayPal Payment to the Sender

By Joshua Phillips

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."


Partial refunds are not available for payments marked as Pending; you must refund the whole amount in this situation. Partial refunds are also not available for personal payments.