Issuing Refunds

Note: Express Checkout Digital Goods is no longer available for new integrations. This feature remains available for merchant accounts that already have Express Checkout Digital Goods enabled.

You can use the RefundTransaction PayPal API operation to issue refunds.

Use the RefundTransaction API to issue one or more refunds associated with a transaction, such as a transaction created by a capture of a payment. The transaction is identified by a transaction ID that PayPal assigns when the payment is captured.

Note: You cannot make a refund if the transaction occurred after the refund period has passed; typically, the refund period is 180 days.

You can refund amounts up to the total amount of the original transaction. If you specify a full refund, the entire amount is refunded. If you specify a partial refund, you must specify the amount to refund, the currency, and a description of the refund, which is called a memo.

When you call the RefundTransaction API, PayPal responds with another transaction ID, which is associated with the refund (not the original transaction), and additional information about the refund. This information identifies:

  • The gross amount of the refund, which is returned to the payer
  • The amount of the refund associated with the original transaction fee, which is returned to you
  • The net amount of the refund, which is deducted from your balance

To issue a refund:

  1. In the RefundTransaction request, specify the transaction ID of the transaction whose payment you want to refund.
    TRANSACTIONID=transaction_id
  1. Specify the kind of refund, which is either Full or Partial.

    REFUNDTYPE=Full
    

    or

    REFUNDTYPE=Partial
    
  2. For a partial refund, specify the refund amount, including the currency.

    AMT=amount
    CURRENCYCODE=currencyID

  1. For a partial refund, specify the memo description.
    NOTE=The-Memo-Description
  1. Execute the RefundTransaction operation.
  2. Check the acknowledgment status in the RefundTransaction response to ensure that the operation was successful.