How to Give a Refund through PayPal

Just Follow these Simple Steps to Painless Refunding

Occasionally it happens that an online customer is not going to be happy with the service or item he or she receives and is going to request a refund. And if you sell any number of items online, you will have to give a refund, or at least deal with an unhappy customer, eventually. If you're doing all your business through PayPal (as you should be) then here is how you give a refund:

#1: Log into your PayPal account and find the transaction that you wish to return. Make sure you get the right one! This is especially true if you've sold through eBay, as the buyer's real name will be displayed on the PayPal list but their username will be displayed on your eBay "sold" list. On eBay, simply choose "View Shipping information" from the drop down menu on the right to find out their real name.

#2: After you've found the specific payment and are sure of it, simply click near the bottom where it says "Issue Refund." You will be given the choice to issue a full or partial refund. Nearly all are going to be full, but if you've worked something out where you don't pay for shipping on lost items, etc. with the customer then you may only need to refund some. Do your calculations twice if this is the case!

#3: Simply hit confirm, review the transaction information, and hit confirm again. Voila! It's done and couldn't be simpler. It should show up in the customer's PayPal history immediately but if it does not be sure to give it at least 2 or 3 days for receipt.

Keep in mind that if the refund is issued within 60 days of initial payment you will receive your transaction cost back. If you didn't know, for selling items via PayPal, they take a small fee. For items less than 3,000 dollars it is 2.9% the final value plus an additional 30 cents. The full list can be found here.

If you get any more complaints from your customer (i.e. a claim that they haven't received their refund) then politely let them know that you've done what you needed to and that they should contact PayPal if there are any problems. Be courteous but don't bend over backwards, especially if the problem wasn't your fault, such as the shipping service losing the item. The customer isn't going to lose anything but time, while you lost time and twice the value of the item since you also don't have the item.

Join me next time when I tell you how to avoid having to give a refund in the first place via internet commerce!

Check out these book for more information on selling online:

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Comments 3 comments

meech741 7 years ago

Good info! Thanks.

jake 6 years ago

I needed that info


Soham 4 years ago

Thanks for the information.

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