How Do PayPal Refunds Work? (All You Need To Know)

Refunds are a great tool when shopping. Refunds allow you to be able to get your money back if you aren’t fully satisfied or there is an issue with the item or service.

If you recently purchased an item through PayPal you may be wondering how PayPal refunds work and how to get one? I did some research and this is what I learned!

How Do PayPal Refunds Work In [currentyear]?  ‌

PayPal refunds are a simple process in [currentyear]. First, you have to request a refund directly from the seller. Furthermore, depending on the payment method you originally used, that will determine where the money is returned and how long it takes to process. Fortunately, there are no extra fees when issuing or receiving a refund.

If you want to learn more about how to request a refund, how long refunds take to process, where the money is returned, and more, read on!

How do I Request a Refund?

First of all, PayPal does not refund your payment, the seller you originally paid refunds your payment.

Therefore, to receive a refund you have to request a refund from the seller you originally paid.

Additionally, you have 180 days from the original payment to the seller to request a refund.

Furthermore, to request a refund:

  1. First, you need to log into your PayPal account
  2. Second, go to the “Summary” page and find and select the transaction you want a refund from and you will see the seller’s contact information
  3. Last, use the contact information to send the seller an email
    • Moreover, in the email, you need to ask the seller to go to the “Transaction Details” page for the payment you want back and click “Issue a refund” 

Additionally, if the seller will not refund your money you may be eligible to open a dispute.

Where does my PayPal Refund Return to?

Your refund returns to the same place you originally paid from. Therefore, if you paid with your credit or debit card it will return to your credit or debit card.

Furthermore, if you paid with your PayPal balance the money will be returned to your PayPal balance.

However, there is one exception, if you paid with your bank account the money will be returned to your PayPal balance.

After the money is in your PayPal balance, you can then transfer it to your bank account, if you wish.

Additionally, if the payment was split between two payment methods such as your bank account and a credit card, the amount you paid from each will be returned to where it came from.

How Long Does a PayPal Refund take?

How Long Does a PayPal Refund take?

Unfortunately, the processing time for a refund depends on which payment option the money is returning to.

  • Debit or credit cards take up to 30 days
  • Bank accounts (PayPal balance) take 3-5 business days
  • PayPal balance is instant/same day

Additionally, if you paid with your bank account and the money is sent to your PayPal balance and you then transfer that money back to your bank account, it may take 3-5 business days.

Are there any Fees for a PayPal Refund?

Fortunately, there are no fees when issuing a refund as a seller or receiving a refund as a buyer.

However, any fees originally paid to process the transaction, usually paid by the seller, will not be returned.

Why is my PayPal Refund Pending?  ‌

If your refund is pending it is because there was not enough money in the seller’s PayPal balance for the refund so the funds are being transferred from the seller’s bank account.

Moreover, bank account transfers to PayPal usually take about 3-5 business days to process, unless using an instant transfer.

Furthermore, once the funds have been processed, you will receive the money.

Does PayPal Refund Money if Scammed?

Fortunately, PayPal will refund your money through PayPal’s Purchase Protection Program if you are scammed, as long as your purchase qualifies.

PayPal Purchase Protection protects buyers if they don’t receive an item they bought, the item is not in the correct condition, or there is an unauthorized charge on their account.

Moreover, items that don’t qualify for PayPal Purchase Protection are:

  • Real estate
  • Vehicles
  • Prepaid cards
  • Industrial machinery
  • Custom-made items
  • Donations
  • Any items that violate PayPal’s policies
  • Any items bought in person
  • Any items described accurately
  • Friends and Family transactions
  • Anything reported after the 180-day or 60-day periods (depending on which dispute is being made)

Furthermore, you must report not receiving an item you purchased or the item being in the incorrect condition within 180 days of the original payment.

If you report the issue within 180 days you will receive a full refund, including any shipping fees.

Additionally, if there is an unauthorized charge on your account you need to report it within 60 days of the charge and you will receive a full refund.

To know more, you can also read our posts on how long do PayPal refunds take, PayPal friends & family refund, and PayPal complaints.

Conclusion‌ ‌ ‌

Fortunately for PayPal users, refunds through PayPal are simple. Moreover, there are no additional fees charged for receiving or issuing a refund, and you are protected against scams.

Furthermore, to receive a refund you first have to request the refund from the seller you originally paid. Then, the money will be refunded to the payment method you originally used. Additionally, the payment method also determines how long the refund takes to process.

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Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of

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