How do I issue a refund?

Refund within 180 days of payment

You can refund the entire amount of a transaction or portions of it. The default refund period is 180 days from the transaction date.

If you refund a payment for goods or services, there are no fees to issue the refund, but the fees you originally paid as the seller are not returned to you. The amount of the refunded payment will be deducted from your PayPal account.

To issue a refund:

  1. Click the Activity tab at the top of the page.
  2. Click All Transactions.
  3. Click the transaction you want to refund and then click Refund this payment.
  4. For 'Refund amount', enter the amount you want to refund, (you may have the option to refund a partial amount of the payment) and click Continue.
  5. Review your information to make sure you entered the correct refund amount and click Issue Refund.

The refund is credited in the same currency as the original payment.

  • For bank account payments, the refund is credited to the sender's bank account.
  • For PayPal balance payments, the refund is credited to the sender's PayPal balance.
  • For credit card payments, the refund will be credited to the sender's card (it can take up 30 days depending on the card issuer).
  • For payments made with both a credit card and another payment method, the amount paid by card will be credited to the card and the rest to the PayPal balance of the sender.
  • The conversion rate used depends on how long after the original transaction the refund is made. Learn more in our User Agreement.

Refund after 180 days of payment

You can also make a full or partial refund after 180 days following the date of the original payment. You can use the Send Money feature of your account to refund someone more than 180 days after the original payment date.

In these cases, the payment will be credited to the PayPal balance of the recipient. However, fees for this transfer and any fees incurred during the original transaction will not be refunded.

If a buyer receives a refund using 'Send money' while the 180-day period has not yet passed, they can decline it and ask the seller to use the link 'Issue a refund' described above.