PayPal Refund Process

Issuing a Refund
When a refund is issued, the buyer receives the net amount of the original transaction plus the refunded fee from PayPal.To issue a refund, simply sign into your PayPal account and find the purchase that you are seeking to refund under the History tab. Click the 'Details' section and then click 'Issue Refund.' Indicate the amount that you would like to refund to the buyer.
Partial and Complete Refunds
PayPal permits partial and complete refunds for purchases of goods and services. When a full refund is issued, the original transaction fee is credited by PayPal, less a 30-cent processing fee. Partial refunds are subject to partial credit for the associated transaction fee.
New Refund Fee
Effective August 10, 2010, the PayPal User Agreement was amended to provide for a new 30-cent refund fee. The new PayPal provision provides that upon refund, the buyer's account will be credited in full while the account issuing the refund will be subject to the 30-cent fee.
Refunds After 60 Days
Refunds issued after 60 days are ineligible to receive credit for the original transaction fee for receiving the payment. The process for issuing a refund is the same as the process for refunding within the 60-day window; PayPal, however, will not issue a credit.