How to Refund Payments on PayPal (Step By Step 2021)

Last updated on May 24, 2021

There are many reasons why you may want to learn how to refund pending Payments on PayPal. But among all, this feature is very important when receivers PayPal account get issues. Before I further my explanations, let me explain what it means by PayPal Payment refund.

Understanding PayPal Payment Refund

PayPal payment refund is a feature which allows you to forward back the money received from a sender with just few clicks.

Normally, when sending payments by default, PayPal usually charge certain amount for every successful transaction. (PayPal transaction fees) But when you refund payment, neither the receiver nor the sender will bear any further charges. taking example below.

I wanted to send money to James at the same time, John has been a very regular client, I mistakenly sent John the funds which was supposed to be sent to James.

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All you need to do, Is “ask for a refund” instead of telling him to send back. That’s because if he send back he will be charged transaction fees but if he refund the payment then there will be no extra charges.

In other words, the above explanations made it clear that there’s no extra charge when refund is done to those who are still asking “What are the PayPal refund transaction fees”?

Instances where the PayPal refund feature is more useful

Apart from the above given example of sending to the wrong PayPal address where you can order the receiver to issue a refund, there are other instances where the refund feature can also be very relevant as listed below.

1. When Your PayPal Account is Limited

The PayPal refund feature has made many to recover their loss when their PayPal accounts get limited.

PayPal give over 90% of limited accounts the grace to refund back to their senders, and with this, when your PayPal get issues (limitations) you can easily refund them back to the senders as far as they are your customers.

The only problem you may encounter is when the payments comes from companies like Fiverr , Upwork, etc such brands and organizations won’t attempt your refund.

But when the payments were received from individuals, you can refund the money from the limited PayPal accounts back to them and order them to help you send to another account.

Always remember the refund feature when your PayPal account get limited

2. PayPal Sending Error Message

There are times you get paid but when trying to send out, you will keep getting error message to try again later.

This error is common when you just receive some funds and trying to send them out immediately.

If you can’t wait for the funds to spend little time in your account before sending out perhaps it’s too urgent, you may decide to refund the payment then order your sender to transfer the money to a different PayPal account.

When PayPal begin to show such error message, You only have to wait for 24 to 48hrs. if there’s no further technical issues, it will be resolved automatically otherwise you may need to contact PayPal officials for help. or issue a refund.

Apart from the few reasons above why you or your clients may issue refunds, there are many other reasons which you may come across but in which ever way, always remember the PayPal refund feature as it’s very important.

Having known all of the above, let me quickly show you steps on how to refund on PayPal. follow below guide.

How To Refund Payments On PayPal

How To Refund Pending Payments On PayPal

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Login your Paypal account and scroll to your transaction history section at the bottom.

Now taking the below screenshot as my transaction history, I received 14$ from a friend March 8 and after PayPal took their charges I was left with 13.15$ am sure you can see that below.

Let’s say I want to refund the 14$ payment, I will only click on it from the transaction history section and a new page will show up: Just scroll down the page and click on the Refund payment link

From the next page, it will appear as below: Just scroll down and click on the continue button and you’re done.

As soon as you hit the continue link, your sender will receive the money back to his/her PayPal account.

Simple Rules of Pay-Pal Refund

For every PayPal refund you attempt to make, always remember the below tips and rules.

  • You cannot refund more than what you receive but you can refund less than what you received.
  • As boldly and officially stated on the refund page, ” You can issue both partial or full refund 180days after the original payment was sent
  • Your refund can only go back to the senders e-mail, as you’re not allowed to switch or change PayPal address during refund.
  • When you refund payment, there’s no transaction fee from your end


Read Also: How to get Your Money from PayPal Pending Balance

Conclusion: How To Refund Pending Payments On PayPal

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