Unable to Issue a Refund on Paypal, so Customer Canceled the Order on Paypal

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New Member
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Hey there,

 

A customer wanted to cancel a set of three orders that she placed as a mistake on Paypal Express, so she could re-order in one batch to save on shipping.

 

I tried to refund her order, but I get error code 1007. We just opened today, so we hadn't yet set up Paypal. I set up my Paypal account to issue the refund, and we still cannot refund her. I think the issue is that there are no funds yet in our Paypal account, since we just set it up today. I don't want to wait several days to get the Paypal funds (as I'm not sure of when they payout). 

 

Therefore, she canceled the orders herself on Paypal directly. Will this show up on our account automatically? Should we manually cancel the order now? I'm afraid that if I take the incorrect action, she won't get her refund. 

 

Thanks!

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Shopify Staff
Shopify Staff
794 40 122

Hey, @Nardellos!

 

Ava here from Shopify!

 

PayPal error code 10007 looks like there was permission denied for the transaction. Their site here says

 

 

I'm thinking it may have been denied if your PayPal account emails are not matching. When you first start a Shopify store, we create a placeholder PayPal account for you under the email account you used to sign up. Have you gone to Settings >Payment Providers and added PayPal, then added your own PayPal account rather than this placeholder one? If the PayPal account was changed after the sales were made, the funds may be in the placeholder account. You would just need to complete set up of that account to access the funds! 

 

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So when the customer made the order, the funds may have gone to the placeholder account. This may also be why you can't see the funds in your own PayPal account, they may have gone directly to that placeholder account. Then when you tried to refund from the admin, you may have updated to use your own PayPal business account, meaning the account emails no longer matched between the Shopify admin and the PayPal business account. If the refund could not be verified, it would have been denied. 

 

Could you check the email account listed as the account owners and see if there are any emails from PayPal asking you to complete account set up? If you could complete the set up of that account, you should see those funds. You can always reach out to PayPal's support team here, there is an option to start a chat at the bottom of the page by hitting 'Message us'. They may be able to transfer the funds between the placeholder account and your current account, which will hopefully allow you to refund directly from the admin. If they cannot do this, you may be able to refund from PayPal's side, then mark the order as refunded in the Shopify admin.

 

Could you give that a go and let me know how you get on? Thanks!

 

Ava
Social Care | help.shopify.com

Ava | Social Care @ Shopify
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New Member
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Hey Ava,

I think the issue is that the funds are in the placeholder account. We
currently have a paypal account for nardellosfreshpasta@gmail.com, and that
has been getting orders since April 17th, but I can't figure out where the
funds from before then would be.

I tried to set up a business account with my personal gmail account;
however, the balance is at $0. So the funds are not there either. I've
contacted PayPal support as well, but they haven't responded. Do you know
what email the placeholder account is associated with?


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Shopify Staff
Shopify Staff
794 40 122

Hey again!

 

Thanks for the reply! The placeholder account would usually be set up under the first email you used to set up your Shopify store. If you're not sure what email that might have been, you can add /activity to the end of your URL when you have the admin home view open. So you URL would look like - store-name.myshopify.com/admin/activity. Here you can see all the activity taken on your Shopify store! You may be able to see a post here saying 'you changed account email from x-email to nardellosfreshpasta@gmail.com'. If you added the PayPal gateway before changing the account email, the PayPal gateway might still have been attached to the old email. 

 

If your Paypal is now fully set up with nardellosfreshpasta@gmail.com, you will be able to refund any future order through Shopify without any issues.

 

When refunding, the PayPal gateway in the admin needs to be connected to the account that accepted the payment, so it can access the payment made originally. So you can either reconnect the old account to refund, then after the refund has been made, reconnect the nardellosfreshpasta@gmail.com account. What might be best is for you (instead of diconnecting/reconnecting different accounts) is to refund directly through PayPal. If you can't see the funds still, I would recommend reaching out to PayPal's team, as when the customer cancelled the order herself from her own PayPal, her funds may have been returned to her.

 

If you can get that confirmation from PayPal that the order has been refunded, you can then mark the order in the Shopify admin as cancelled. If it is currently marked as unfulfilled, it will stay in this state as it is not possible to fulfil a cancelled order. There would not be a need to refund it from the admin if the customer has already gotten her money back! 

 

However, if the money has not been refunded to the customer, PayPal should be able to track down those funds for you and you can refund directly through PayPal. 

 

Let me know if that works for you!

 

Ava
Social Care | help.shopify.com

Ava | Social Care @ Shopify
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Mark it as an Accepted Solution
 - To learn more visit the Shopify Help Center or the Shopify Blog

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