How to Refuse a PayPal Payment

Three years and three name changes after it was founded, PayPal left the gate running in 2001, handling approximately 189,000 payments a day for a year-end total of $3.1 billion, according to Statistic Brain, an online statistics source. While many startup businesses experience a drop in business following a unexpectedly triumphant first year, PayPal's customer base has continued to grow as more and more small business owners have bought into the eBay subsidiary's slogan, "The faster, safer way to send money." But refusing a payment can be a different story. Currently, PayPal does not offer a universal option for a small business, online vendor or private party to instantly reject an incoming payment. However, should you decide it would be in your best interest to refuse a payment, there are ways to avoid committing to an unwanted buyer by accepting his or her virtual cash.

Refusing a Credit Card Payment

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Step 1

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Step 2

Click "History" to reveal a list of your PayPal transactions.

Step 3

Scroll down to the credit card payment you want to refuse and confirm that it's listed as "Unclaimed."

Step 4

Do nothing. An unclaimed PayPal transaction automatically expires in 30 days, at which time the payment is refunded to the sender's credit card.

Refusing a Payment by Sending It Back

Step 1

Step 2

Click "History," located below the Request Money section. You'll be taken to a page detailing the history of your PayPal transactions.

Step 3

Scroll down to the transaction for which you wish to refund the payment. Click "Details" to reveal a page of information pertaining to the transaction.

Step 4

Click "Issue a Refund." You'll be taken to a confirmation page, detailing the name of the sender, the sending party's email address, the transaction ID and the amount of the refund. Make sure the provided information is correct.

Step 5

Scroll down to the "Invoice Number" pane. If there's an invoice number associated with the transaction, click on the pane to enable the typing cursor and use your keyboard to enter the number.

Step 6

Click on the "Note to Buyer" pane and type a brief explanation as to why his or her payment isn't being accepted.

Step 7

Click the "Continue" button to issue the refund.

Refusing a Payment from a Non-Confirmed Buyer

Step 1

Step 2

Scroll down to "Block Payments" and click "Update" on the right side of the screen. You'll be taken to a page labeled, "Payment Receiving Preferences."

Step 3

Scroll down to the first option, "Block payments for the items not sold on eBay from U.S. users who do not provide a confirmed address," and select, "Ask me." By enabling this feature, you'll have the option to reject payments sent by anyone matching the aforementioned criteria.

Rejecting a Payment Made with Foreign Funds

Step 1

Step 2

Scroll down to "Block Payments" and click "Update." A page labeled "Payment Receiving Preferences" will appear.

Step 3

Scroll down to the second option, "Block payments sent to me in a currency I do not hold," and select, "Ask me." This will give you the opportunity to refuse payment from anyone using foreign currency.

Step 4

Scroll down to the bottom of the page and click the "Save" button.

Block Certain Payments Made to Your Business or Premier Account

Step 1

Step 2

Click "Update," which you'll find in the Block Payments section. You'll be taken to a page titled, "Payment Receiving Preferences."

Step 3

Read through the payment receiving options, which offer automatic blocking for payments made by PayPal account holders who don't live in the United States, people under the age of 18, and purchasers who have submitted duplicate invoice IDs.

Step 4

Check the features you wish to enable. Doing so will automatically block payments made under each associated circumstance; you won't have the option to accept them.

Step 5

Scroll to the bottom of the page and click the "Save" button.

Warning

If PayPal assessed a transaction fee, it may withhold it even if you refund the associated payment.

If there isn’t enough money in your PayPal account to cover the amount you’re refunding, PayPal will automatically withdraw the balance from the bank account you’ve associated with your PayPal account.