I have Paypal Express Checkout set up and have cancelled some orders because stock has not arrived when expected. These orders have not automatically refunded. I understand this is because I had not completed the Paypal setup in my store. I have now done so and all subsequent order cancellations and refunds have processed as expected as far as I can tell. However, the cancellations carried out prior to setup completion are still listed as 'unable to refund'. Do I just have to wait for the system to deal with these, or do I need to process the refunds manually? I do not want to refund customers twice, and I want Shopify to show the refunds (which doesn't appear to happen if I refund a Shopify customer from Paypal directly).
Dallas here from the Shopify Social Care Team.
If an order is our through by PayPal in the Shopify platform there we're really at the mercy of PayPal with what can be done.
For what you're wanting to do you would have to go in directly to the PayPal server in order to provide those refunds because the connection between Shopify and PayPal wasn't connected properly initially.
In PayPal you will have access to all the information that you will need to give the customer a refund. You won't have to worry about a double refund because that information isn't then shared with Shopify after it has been sent from PayPal. Shopify isn't able to go into the back end of PayPal in order to read any more information than what they give us. So you're right, for these orders that you're referring to you're going to have to manually refund them in PayPal and then you'll have to manually note that they have been refunded. You're able to leave comments inside the order however:
Please let me know if you have any further questions.