How to Refund Money on PayPal From a Gift Sent

By Alan Sembera

PayPal allows you to send gifts without paying the usual transaction fee.
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PayPal makes it easy to return payments sent to your account, even when the money was marked as a gift from a friend or relative. You can simply refund the original payment, effectively marking it as canceled without having to create a separate transaction. You have up to 60 days to issue a refund; after that time, your only option is to send a regular payment to the other person's PayPal address.

Step 1

Log in to your PayPal account.

Step 2

Click "Details" next to the transaction record for the gift payment.

Step 3

Click "Issue a Refund" on the Transaction Details screen.

Step 4

Fill in the "Note to Buyer" field if you wish to send a short message with the refund. Click "Continue."

Step 5

Click "Issue Refund." PayPal immediately deducts the entire amount of the gift payment from your balance and returns it to the original sender.