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Usually, you can issue a refund using the same payment method the buyer used to purchase the item. Even so, talk to your buyer and the payment provider you used to work out the best way to refund their money.
Contacting your buyer
To contact your buyer through eBay:
Click My eBay at the top of most eBay pages. You may be asked to sign in.
Click the Sold link on the left side of the page under the All Selling heading.
Locate the item for which you are issuing a refund.
From the Actions column drop-down menu, select Contact Buyer.
Complete the form with your message to the buyer and click the Send button.
Note: If you're using Selling Manager or Selling Manager Pro, select the box next to the item, and then click the Email button at the top of the Sold Items section.
You can also request your buyer's email address and phone number.
Issuing the refund
To issue a refund with PayPal:
Log in to your PayPal account at the top of the PayPal home page.
On the My Account Overview page, find the item you need to refund, and then click the Details link.
If you don't see the item to be refunded, click the All Activity link.
On the Transaction Details page, click the Refund Payment link located near the bottom of the item page.
Follow the directions on the page to issue a refund to your buyer.
Note: This refund method is only available for 60 days after the end of the transaction. If the transaction you want to refund occurred more than 60 days ago, follow these instructions:
Click the Send Money tab located at the top of most PayPal pages.
Enter the information required to send money to the buyer.
Once this information is complete, click the Continue button.
Review the information on the Confirmation page for accuracy, and then click the Send Money button to complete the refund.
If you have a PayPal question, contact PayPal Customer Support.
Receiving a Final Value Fee credit
To receive a Final Value Fee credit to your seller's account, you need to open and close a case in our Resolution Centre (Giving your buyer a refund doesn't automatically result in a Final Value Fee credit). Depending on how you close the case, you may receive a Final Value Fee credit. For more about the credit, see receiving a Final Value Fee credit.
If you started out trying to get the buyer to pay, but then you both decided to end the transaction, see what to do when a buyer doesn't pay (unpaid item process).
If you need to cancel the transaction because you as the seller have a reason you can't complete the sale (like the item is broken, gone, or sold to someone else), see cancelling a transaction.
A message from our lawyers
The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence, number 304962. eBay International AG is an authorised representative number 308318 of PayPal for the purpose of providing information about PayPal. eBay and PayPal are not acting as your agents, are not providing personal financial advice to you and do not take your individual circumstances into account in providing information about PayPal. You should consider PayPal's
Combined Financial Services Guide and Product Disclosure Statement
before deciding to sign-up for or use the PayPal online payment service. For further information about PayPal services visit the PayPal website at www.PayPal.com.au.
PayPal Buyer Protection and PayPal Seller Protection are also subject to the terms and conditions in PayPal's User Agreement, incorporating the Buyer Protection policy and Seller Protection policy which include details on eligibility criteria and the discretionary nature of the Policies.