How to Refund Payment on PayPal?

PayPal is one of the most popular payment gateway around the world. As it opens up a new way for its users by enabling an easy and more reliable method of sending and receiving money online, PayPal has become a convenient and safe platform for all virtual transactions. Being one of the largest online payment gateway, PayPal provides strong security for users account as there is a lot of sensitive data stored, including users’ bank account details and credit card details.

The platform also provides PayPal Buyer Protection to help the users in getting refunds for damaged goods. PayPal features a dedicated anti-fraud department to dig into the matters where buyers have to pay for something they didn’t order.

The online shoppers get frustrated when they receive faulty products or their package is lost in the transit. The situation gets worse when a buyer receives something that does not bear any resemblance to the item they had ordered. In such cases, requesting for a PayPal refund is a must.

PayPal refunds can be described in two-ways – either you ask for a reimbursement of a wrong product received or you issue a refund payment to send your friend’s portion of the lunch bill.

Here’s how to refund payment on PayPal in simple steps:

how to refund payment on PayPal

  1. Log in to your PayPal account.
  2. Navigate to the ‘Activities’ tab at the top of your screen.
  3. Find the transaction you want to refund and click ‘view details’.
  4. Click the ‘Refund this payment’ button that appears under the total amount. You can return a partial or full refund.
  5. Click ‘Continue’ to review the refund.
  6. Hit ‘Issue refund’ located at the bottom of the screen.

File a Buyer Protection dispute and get reimbursement

If you are not satisfied with the received item, then you can open a dispute as per the PayPal Refund policy. You just need to follow the procedure given below:

  1. First, ensure that it has not been more than 180 days since you made the transaction. The buyer has to initiate the resolution process within 180 days.
  2. Log in to your PayPal account, open a dispute with the concerned seller.
  3. If both the parties (buyer and seller) agree to it, then you will easily get the refund.


  1. Go to the official platform of PayPal.
  2. Find the transaction in question.
  3. View the transaction details.
  4. Scroll down and click ‘Resolution Center.’
  5. Now, you will have 20 days after opening the dispute to submit the claim.

It is important to note that you must keep the documents related to your purchase safely as you might need them later for the completion of the reimbursement process.

How long will the PayPal refund process take?

PayPal refund returns to the original source of payment. If the payment is done via debit card or credit card, the refund will be credited back to the same card within 30 days of requesting a refund. You can check the refund status as follows:

  • Pending – Even after your refund has been issued, it usually takes 3-5 business days for funds to reflect in your bank account because the bank takes time to process the transaction.
  • Partially refunded or refunded – In this case, the funds will reflect in your card – either a part of the total amount or the full amount – as applicable.
  • Completed – This refund status means that the refund process has been completed from the seller’s end, however, it may take additional 3-5 business days for it to process and reflect in your bank account.

PayPal refund involving currency conversion are issued within one business day from the date of the original payment. Though in some cases, it takes more than one day also. In addition, you may not receive the full amount as a refund because of the fluctuations in the transaction exchange rates.



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