Common questions about issuing refunds and troubleshooting tips

Why was the refund I issued taken out of my bank account?

When you send a refund we’ll always first attempt to debit it from your PayPal balance. If you don’t have enough money in your account, the entire refund will be issued from the primary bank account linked to your PayPal account.

Will I get my transaction fee back?

If you refund a payment, we’ll retain the fixed portion of the fee you were charged when you received the payment. We’re not charging a fee for the refund, but simply retaining the fee, which has already been collected from your PayPal account.


  • A buyer sends £100 to a seller
  • Assuming the seller is on the standard fee rate (3.4% plus 20p), the seller receives £96.40 into their PayPal account
  • The seller later decides to issue a full refund to the buyer
  • During the refund, PayPal credits the merchant £3.40
  • The buyer receives a full refund of £100.
Can I cancel a refund?
Once a refund has been sent, it cannot be cancelled.