Question about refunding the payment back to my client after days of it being on hold by paypal.

[jimiuna]

It's my first time using paypal in my freelance job and I used their invoice feature where you can write your own invoice and it will be mailed to your client and at the same time will get paid through it. I didnt know that paypal will deduct fee from it and so I want to cancel it while it still on hold.

My question is, If I go to the transaction details and click "Refund this payment" will paypal refund 100% of the amount (including the fees) back to my client? and how long will it take for them to receive the money back?

Thanks

[sharpiemarker · Accepted solution]

@jimiuna 

You can’t cancel a completed payment (even though on hold) but a refund can be issued. The PayPal fees paid will not be refunded so the difference in fees will come out of your pocket because using PayPal’s selling tools (Invoicing, or sending money as goods and services) is not free.

It’s quite possible that the refund will come from your available PayPal balance or your bank account instead of the money that is on hold when you issue refund while money is on hold because that money is temporarily not available for use.

If the job does not require physical shipping, you can update the order status to get the money released sooner:

How can I release my payment(s) on hold?

After that, you may ask sender to confirm receipt to release money if that option is available to them 48 hrs from date of payment and you order status.