Common questions about issuing refunds

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

If you have a balance with PayPal or you have money waiting that you haven’t accepted yet, the refund is paid from it. If you don’t have a balance or money waiting to be accepted, the entire refund will be issued from the primary bank account linked to your PayPal account. It usually takes 3 to 5 business days for bank payments to complete. Even if the refund status says complete in your PayPal account, it could still take a few days for the bank to process (every bank’s processing times varies).

Will I get my transaction fee back?

When you grant a refund, you may get a credit for the transaction fees we originally charged.

Here are the different scenarios:

  • When you issue a full refund using the "Issue Refund" link, we credit the variable portion of your transaction fee, while the fixed portion of the fee ($0.30 USD per transaction) is not refundable. For detailed information on transaction fees, click here.
  • When you issue a partial refund, we credit a percentage of the variable transaction fee, based on the amount of the refund.
  • If your buyer originally paid using their American Express card, you were not charged a fixed fee, and the entire transaction fee will not be refunded.
My buyer says they haven’t received their refund. Why?

If your buyer used their bank account to make this purchase, the refund may still be processing. It usually takes 3 to 5 days for bank payments to complete and become available in your buyer’s bank account. Additional time may be needed, depending on the buyer's bank. You can find an estimated clearing date for the refund near the payment status on the Transaction Details page.

If your buyer used a debit or credit card to make this purchase, the amount is refunded to that card. Refunds to credit or debit cards can take up to 30 days depending on the card company involved.

If your buyer used PayPal Credit to make this purchase, the amount is refunded to their PayPal Credit account.

Can I cancel a refund?

Once a refund has been sent, it cannot be canceled.

*Refunds cannot be issued through the PayPal mobile app.