How to refund a payment on PayPal in 4 simple steps

Nopparat Khokthong/ShutterstockYou can refund an entire or partial payment on PayPal.
  • You can refund a payment on PayPal easily, so don’t worry if a transaction seems to have gone wrong, as there’s a painless re-do option.
  • You can refund a payment up to 180 days after receiving it on PayPal.
  • You can also issue partial refunds if you are offering a discount to a buyer or if you were sent too much money in the first place.
  • Visit Business Insider’s homepage for more stories.

Maybe you’re feeling generous and you want to send back your friend’s portion of the dinner bill, or maybe you just received a $US1000 payment in error and you want to do the right thing and return it.

Or maybe that classic vinyl record you sold on eBay got a scratch during shipping and the buyer is asking for a discount.

All of these situations and more can easily be remedied by issuing a PayPal refund, which is a quick and easy process.

Here’s how to do it.

How to refund a payment on PayPal

1. Log into your account and click on the “Activity” tab at the top of the screen.

How to refund on PayPalSteven John/Business InsiderA PayPal refund can be made for any payment you have received in the past half year.

2. Find the payment you want to refund and click on the name of the payer.

3. Click the “Refund this payment” button that appears under the total.

How to refund on PayPalSteven John/Business InsiderPayPal will also refund its fees when you complete the refund process.

4. Enter the amount of the refund you wish to issue (if it’s not a full refund), add a note if you’d like, and then hit “Issue Refund” at the bottom of the screen.

How to refund on PayPalSteven John/Business InsiderYou can choose to refund the full amount or only part of it.

And that’s that, the money is headed back out of your PayPal account to whence it came.

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