Store owners can issue refunds automatically with just a click using PayPal Express Payment Gateway. You can directly process the refunds via PayPal.
Upon refund, the WooCommerce order status will be changed and the refund log will also be updated in the order notes.
Process refund via PayPal
To process a refund of an order via PayPal:
- Go to WooCommerce > Orders and select the order to be refunded.
- Go to the order summary, and click on Refund button.
- Specify the quantity of the product(s) to be refunded in the text box(es) that appear for each line item. The refund amount will be automatically adjusted based on the products refunded. If inventory levels are not managed, you can also enter the Refund amount, without adjusting the product quantity.
- If the quantities of items are not set when issuing a refund then the order is not marked as refunded and the email that is sent will say partial refund.
- Add reason for the refund, if needed.
- Choose Refund $XX.XX via PayPal Express.
Please view(click to expand) the below-given illustration for a better understanding.

Note: In Manual Refund (basic version), the store owner will have to issue the refund to the customer manually by any other means.
Refund logs
All the refunded details will be logged in the Order Notes section of the WooCommerce Orders window. The order notes can be viewed from the right-hand sidebar as shown below:

Full or Partial Refunds
PayPal Express Payment gateway also allows you to issue a full or partial refund. To issue a full or partial refund,
- Go to WooCommerce > Orders.
- Select the order to refund.
- Go to PayPal Express Action placed at the top right hand sidebar of the orders page.
- Choose Full Refund or Partial Refund from the drop down.
- Upon choosing partial refund, you can specify the amount to be refunded and click on Refund.

Managing stock on refund
You can easily manage the stock on refund by enabling the option Restock refunded items from the orders window.

To know more about the payment gateway, please refer here.
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Comments (5)
Gilbert Villarin
February 28, 2022
I received a message in my transactions which shows “Issue Refund”, what will I do next? Should I click it or just leave it like that?
Alan
March 17, 2022
Hi,
If you are trying to provide a refund then please click the “Issue Refund” option.
carl beck
March 12, 2021
I just cant get it to work.
I receive payment notifications in WC, but refunds do not work.
I only have the button “Refund Manually”.
I am tired…
Carl
Mark
March 16, 2021
Hi Carl,
Refund via PayPal is available only in the premium version. You can see it listed in premium version features under the free version plugin page itself.
kk
April 6, 2021
This plugin for paypal and woocommerce does not require a premuim sub to refund orders (something i def think should be standard on a payment plugin anyway…)
Plugin: “WooCommerce PayPal Checkout Gateway” by Woocommerce
https://woocommerce.com/products/woocommerce-gateway-paypal-checkout/