How Shopify sync refund transaction message from PayPal?

Shopify Partner
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Hi team, I work as a developer, assisting clients with PayPal integration on their Shopify websites. I have a question concerning the synchronization of refund information from PayPal to Shopify.

Our client issued a refund directly through PayPal and while it was successfully refunded to the buyer, the payment status has not been updated on Shopify's end. I've reached out to PayPal Support and was informed that Shopify utilizes PayPal's NVP API for order placement. However, it's unclear whether the IPN or webhook is used to synchronize the transaction status.

Could you please clarify how Shopify syncs transaction messages from PayPal and how can we maintain accurate and synchronized transaction statuses between PayPal and Shopify? thanks

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