From small businesses to large enterprises, everyone recognizes PayPal and uses it to simplify their payment processes. One of the most popular payment systems, it eases the payment process and enables professionals to earn payment across the border. Thus, it contributes to streamlining international trade.
However, many times, the buyer needs a refund when he is unsatisfied with the product or service. Many people are curious to know about the refund time of PayPal. Before moving further, let us clear here that PayPal itself doesn’t initiate or handle refunds. Its role is to perform payment processing. So, the actual PayPal refund time depends on the merchant’s action.
How Much Time Does PayPal Take to Refund?
PayPal is a payment process and it doesn’t start with a refund. It’s the seller who initiates the process and makes a refund on time. So, when you think about how long a PayPal refund takes, don’t forget to consider the seller.
Moving further, people need to raise a refund request within 180 days of the transaction. The PayPal refund operation is subject to the original payment method you choose.
Here is a bifurcation of the same:
- For credit or debit card – Refund within a day
- For bank transfers or checks – up to 7 business days
- Payment made by PayPal Balance – On the same day the refund is processed
Keep in mind that in the case of credit card or debit card payment, the refund operation can take up to 3 to 5 additional business days as per the policy of the card issuer.
PayPal refund time also depends upon the internal and external processes of the PayPal system.
By default, refunds are paid out of an existing PayPal account. The refund will be initiated from the linked bank account if the PayPal account has a low PayPal balance.
Does PayPal Charge a Refund Fee?
No, there are no charges applicable to refund. However, a certain amount of charge will be applicable if there is a currency conversion.
How to Initialize the Refund Process on PayPal?
The refund process on PayPal is simple. The key steps to request PayPal are as follows:
- Log in to your PayPal account
- Navigate to the Activity section
- Search for the transaction you want to refund and click on it
- Click on the “Issue a refund” option, next to the transaction details
Once the seller agrees, you will receive money via PayPal, depending upon the method of payment you choose. If the seller refuses to make a refund, you can directly raise an issue through the PayPal Resolution Center.
How to Check Your PayPal Refund Status?
Once you are done with the payment refund process, next you can check the status of the PayPal refund. Let’s understand how to check the status of the refunded amount with the following steps:
- Log in to your PayPal account.
- Click on the “Activity” link in the top menu.
- Click on “Filters” and then select “Refunds”.
- Now narrow down your search by selecting the date range.
- Click on “Transaction” and check the status.
Types of Status:
- Pending – This status reflects PayPal refund pending. It means that the seller has approved and initiated the refund, but the amount has not been received yet.
- Refunded – This status means a full refund has been received in the PayPal account.
- Partially Refunded – This status reflects the partial refund that the seller issued.
- Denied – It means the seller has denied the amount, and no refund will take place.
What to Do If the Seller Refuses the Refund?
Many times, there is a situation where the seller or merchant refuses to make a refund. As a buyer, you must be aware of the key solution to handling a situation.
Initially, in such a situation, you must contact the seller directly through email or call. You can request a refund while explaining the key problem you are facing.
Still, if the seller does not initiate the refund operation, you can raise a dispute in the PayPal Resolution Center.
Here are the steps you can take to resolve this:
- Sign in to your PayPal account
- Go to the Resolution Center
- Click – Report a Problem
- Select the transaction in question
- Mention the exact situation and then submit the dispute
Final Remarks
PayPal refund time depends upon the original payment method you choose. So, it’s not your PayPal account that’s responsible for the refund. Whether you are the seller or the buyer, understanding PayPal refunds is crucial for all. Whenever you initiate a refund, keep the above points in mind. You can also reach customer care service for any help.
Frequently Asked Questions
Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.
