You can refund any payment. If you have a business account - go to the top and click on Tools and then Invoicing. From there choose create invoice. This will take you to a template where all you need to do is fill in Who you want to pay you. What are they paying you for. How much money they are paying. If you have a Personal account - go to the left of your screen (on your paypal home page) and look for Selling Tools (its under Banks and Cards), click on selling tools. You'll be brought to a screen that says FEATURES YOU CAN USE RIGHT NOW, beneath it on the left side is send invoices online for fast payment. click there and create your invoice.
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