Those who receive payments via PayPal can issue refunds to the sender by using the PayPal Web site. This feature is put in place for online businesses that need to refund customers or for those who need to return money for any other reason. When the process is complete, the PayPal funds are instantly transferred back to the PayPal account of the original sender. You can learn how to return a PayPal payment by following a few steps.
Visit the PayPal Web site at PayPal.com, and log in to your account.
Click the "Details" link next to the transaction containing the money you received and the sender you want to return the money to.
Select the "Issue a refund" link located under the "Amount received" information.
Type in the refund amount, and then click the "Continue" button.
Click "Issue Refund" to verify the refund and send it to the original payer.