Why can't I issue a refund using a bank account?

A small number of business accounts in the UK with high e-check refund declines, will not be able to fund their refund from their linked bank account. This is done to ensure refunds are more successful. Our systems select the funding source with highest success rate. You can send a refund from your PayPal balance. We recommend maintaining balance in PayPal account to fund your refunds.

Why can I no longer fund refunds by bank?
We have observed that refunds sent from some linked banks have a higher than usual failure rate. Our systems select the refund funding source which has the highest chances of success. This is done to ensure more successful refunds and lesser disputes for you to deal with. You can send a refund from your PayPal balance.

How do I add funds to my account for refunds?
You can add funds to your PayPal balance to send refunds from your balance. Here's how:

  1. Click Wallet at the top of the page.
  2. Click Transfer money.
  3. Click Add money online.
  4. Select a bank account (if you have several accounts available), insert the amount to be transferred and click Add.

If I fund my PayPal account will the refund automatically complete?
After you add funds to PayPal account, it usually takes a few days for funds to appear in your PayPal balance. Once the funds are available in your PayPal balance, you will be able to issue the refund manually. Here's how to issue a refund:
  1. Click Activity at the top of the page.
  2. Click the payment you want to refund.
  3. Click Issue a refund.
  4. Enter the refund amount, then click Continue.
  5. Review the information, then click Issue Refund.

I have multiple accounts with PayPal, but this is the only getting switched off. Why?
We have observed that some accounts have a higher than usual failure rate when issuing a refund with a bank account. Our systems select the refund funding source which has the highest chances of success. This is done to ensure more successful refunds and lesser disputes for you to deal with. You can send a refund from your PayPal balance.

Can this functionality be turned back on?
Our systems are built to ensure refunds are successful, so funding sources with high success rate will be used for funding the refund. Failed refunds lead to disputes which will have a negative impact on your business. Refunds from PayPal balance are instantaneous and always successful.