Sent a partial refund, customer is wondering whether the funds will be refunded to their PayPal or their bank account as they had paid through PayPal. I assumed it would be Paypal although I thought I’ll double check here.
Appreciate any answers 
Topic summary
Main issue: Whether a partial refund for an order paid through PayPal is returned to the customer’s PayPal account or their bank.
Outcome: Refunds for orders paid via PayPal are deposited back into the customer’s PayPal account (not directly to their bank).
Context: A partial refund is a portion of the original payment returned; PayPal is a third‑party payment provider used to process the transaction.
Guidance provided:
- Review Shopify’s PayPal documentation for refund processing details.
- Direct customers to PayPal Support if they need clarification about how funds appear in their PayPal account or subsequent transfers to their bank.
Decisions/Actions: No further action required from the merchant beyond issuing the refund; refer customer to PayPal if questions remain.
Status: Resolved; no disagreements or open questions noted.
Hi @laram ,
Thank you for reaching out to the Community! I’m happy to provide some assistance with refunds, to ensure this gets resolved.
When it comes to refunding orders that were placed through PayPal, those funds would go back to the customer’s PayPal account. To learn more about PayPal and processing refunds, you can check out our PayPal document.
If your customer has any concerns about the funds being deposited back into their PayPal account, you will want to direct them to PayPal Support. They will be able to provide any clarification that may be needed!
Please let me know if you have any other questions or concerns.