Shopify Refund failed due to insufficient funds in your PayPal account

Shopify Discussion
1

hi, i have a store in Mexico and im proceeding a refund to a customer who returned a couple of items. i did all the process through our shopify, but when we accepted to refund the customer we saw this: Refund failed due to insufficient funds in your PayPal account

question is, should we do something else? or just wait to receive some funds from other sales and system will refund the customer at that time?

thanks in advance

2

Hi, @bikelogistics .

That is a great question, thanks for posting! I recommend adding funds from your bank account to your PayPal so you can refund this order as soon as possible. You can only issue a refund within 90 days of purchase, thus you don’t want to miss out on this period.

Additionally, the refund will not be automatic, as the system will not know when you have the available funds in your PayPal. Also keep in mind that having to wait too long for a refund will provide a negative experience for the customer. You want to make sure you are providing top notch customer support, therefor refunding as soon as possible is best practice.

Since we’re on the topic of customer service, you should check out our free course on how to create exceptional customer service experiences. We have this course, along with much more, all for free, at Shopify Learn!

3

hi, thanks for the fast reply. i cannot add funds on my paypal as mexican law would not let us have any money available on the platform more than 24 hrs i belive. when we receive payments through paypal, the money is automatically funded to our bank account at midnight. so we have linked our CC on the paypal for any payment, but it seems when we did the refund to the customer paypal didnt used those CC to process the charge, instead it just said Insufficient Funds. any further comments or help will be highly appreciated. regards

4

Hi, @bikelogistics .

Thank you for the response! Are you not able to transfer the funds and make the refund within the allotted 24 hours? That seems like the best option here.

If not, you will need to either issue store credit in the form of a gift card, or, you could arrange an e-transfer outside of the Shopify Admin.