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How to refund a payment on PayPal in 4 simple steps

PayPal iphone
You can refund an entire or partial payment on PayPal. Nopparat Khokthong/Shutterstock
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Maybe you're feeling generous and you want to send back your friend's portion of the dinner bill, or maybe you just received a $1000 payment in error and you want to do the right thing and return it. 

Or maybe that classic vinyl record you sold on eBay got a scratch during shipping and the buyer is asking for a discount.

All of these situations and more can easily be remedied by issuing a PayPal refund, which is a quick and easy process.

Here's how to do it.

How to refund a payment on PayPal

1. Log into your account and click on the "Activity" tab at the top of the screen.

How to refund on PayPal
A PayPal refund can be made for any payment you have received in the past half year.  Steven John/Business Insider

2. Find the payment you want to refund and click on the name of the payer.

3. Click the "Refund this payment" button that appears under the total.

How to refund on PayPal
PayPal will also refund its fees when you complete the refund process.  Steven John/Business Insider

4. Enter the amount of the refund you wish to issue (if it's not a full refund), add a note if you'd like, and then hit "Issue Refund" at the bottom of the screen.

How to refund on PayPal
You can choose to refund the full amount or only part of it.  Steven John/Business Insider

And that's that, the money is headed back out of your PayPal account to whence it came.

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Steven John has been a freelance writer for more than a dozen years and has been a regular contributor to Business Insider since 2017. His work includes a focus on the tech world, covering companies including Apple, Microsoft, Meta, Google, and others. He also reviews restaurants, shares how-to cooking articles, and writes general interest pieces.Steven also writes for publications including Architectural Digest, The Daily Beast, Forbes, and more. In the past, he also wrote for New York Magazine, Mashed, U.S. News & World Report and other outlets. He runs his own outdoor lifestyle site, Dad Gear Review, and co-hosts the Fact Trekkers podcast with his son. He has had two novels published, Three A.M. and Outrider. He graduated from Emerson College with a degree in communications focused on filmmaking.He is an avid outdoorsman and can be frequently found in a kayak or on a mountain trail, often with his family along for the adventure.Expertise:Tech industryTech hardwareOutdoorsCookingRestaurantsDIYPopular articles:Microsoft: A history of the software giant co-founded by Bill Gates, its products and services, jobs, layoffs, and moreYouTube is a major entertainment force. Here's the platform's history, plus how to create a channel and upload videos.Inside the life and career of Bill Gates, the Microsoft co-founder, billionaire, and philanthropistTim Cook net worth: How the Apple leader earns and spends his moneyBecoming an Amazon seller is a simple process. Here's what's involved, plus how you make money and get paid.