PayPal is the preferred method to send and receive money electronically for many consumers and small-business operators. At times, you need to refund a payment after order cancellation or to resolve a dispute. The process is simple ,and you complete the refund directly from your PayPal account within 60 days or purchase.
Submitting the Transaction
After logging into your account, go to the "History" tab. Select "Details" on the transaction you intend to refund. Enter a full or partial refund amount after hitting the link to "Issue Refund." Enter any amount between 0 and the full purchase price. Then, hit "Submit."
After you submit the refund, PayPal sends the amount to the recipient as it would a payment. You also receive a transaction fee refund for the portion of the payment returned. After processing, the refund appears in your transaction history for documentation.