A question about how PAYPAL refunds are applied...

[ricarmic]

I got asked this by a buyer earlier this week and I did not know the answer.

If a buyer pays for something with PAYPAL via a credit card and I subsequently refund them, does the refund go into their general PAYPAL account, or does it get automagically refunded back against their credit card?

They wanted me to refund to their PAYPAL account because they had cancelled the card since the purchase (no more needs to be said about that part!!). 

As far as I know I have no say in how it is refunded, which is what I told them.....

[sylviebee · Accepted solution]

No money was deducted from PP funds when the item was paid for.

Therefore, since the money was billed to the CC, it also gets refunded to the CC.

[dutchman48 · Accepted solution]

If the buyer pays with his credit card, it is refunded back to the credit card.

If you do it any other way, you may get scammed as the card used could be stolen, or may get a charge back later and you will be on the hook for a 2nd refund.

One of the reasons any payment using a credit card should always be reapplied to the credit card.

It may cause exchange problems if more than 1 currency as the user will pay both times, paying and receiving., but that is just the way credit cards work if you use them. The user could end up paying 5% or more total for the transactions

[pierrelebel]

"As far as I know I have no say in how it is refunded, which is what I told them..."

That is the correct answer in the circumstances.

[snoopwiz]

That is the correct answer in the circumstances.

Under them as well.