Many people who buy and sell online find it helpful to have a PayPal account. PayPal users have either a verified or unverified account. When an account is unverified, it simply means the user hasn't attached a secondary payment method to their account, such as a bank account or credit card. It's possible to refuse a PayPal payment with either type of user, but easier when he has an unverified account.
Log into PayPal using your user name and password. Before refusing a PayPal payment, you'll need to find information pertaining to the transaction, especially if the user has an unverified account.
Find the payment you need to refuse. If you have a number of different transactions, narrow down your choices based on the date of the payment or look through your most recent transactions. Typically, if you need to refuse a payment, it's listed at the top of your transactions.
Look for the button next to the transaction labeled "Claim/Refuse." When an unverified user sends a PayPal payment, PayPal places a button next to the transaction that lets you either accept or refuse the payment. This may also occur if the transaction comes from a different country. If the account isn't verified, simply press the "Refuse" button.
If the account is verified, send a message to PayPal. Give PayPal the transaction number, the name of the buyer, the email address associated with the account and the date of the transaction. Let PayPal know that you need to refuse the payment and send it back to the seller.
Wait five to 10 minutes after logging out of your account to log back in and check your account, if you manually refused the payment. The payment information should now be removed from your account and the funds sent back to the buyer. For verified accounts, it can take up to 30 days for the information to leave your account.
Alternatively, Paypal gives you the chance to refund a payment automatically, which is helpful if the buyer is verified and sent payment. Select the correct transaction and scroll to the bottom of the screen. Click the Refund button and enter the amount refunded to the buyer. This will automatically send the payment back to the buyer.