The short answer is yes, you can issue a refund. But there are some important details you need to be aware of.
Make sure you enough to cover the refund
In order to issue a refund, you will need to have the full balance of the refund available in your PayPal Business account balance at the time the refund is issued.
You can check your balance with this link:
Any funds currently sitting in your PayPal Business account will be shown here under PayPal Balance. Just be aware that if you have Auto-Sweep enabled, so that your payments automatically transfer to your bank account, these funds will not be available in your PayPal Business account as of midnight in your time zone that night.
Remember to account for the processing fee
When your client pays, you receive the balance of the total payment minus the processing fee of 2.9% and 30 cents. If, for example, that same day your client requested a refund, if the only funds in your account are from this payment then you would not have enough to cover the refund.
To further illustrate this, imagine your client paid you $100. You would receive $96.80 in your PayPal Business account ($100 minus 2.9% and 30 cents), which would be available in your balance until midnight that night -- after that, the process of sending it your bank begins and the funds are no longer available in your PayPal balance.
Now if this client wanted a refund, your balance of $96.80 would not cover the $100 needed to return to the client. If you tried to issue a refund in this scenario, the refund would not go through.
You need to have the full balance of the refund available in your PayPal balance in order to successfully issue the refund.
Add funds to your PayPal Business account to cover the refund
If you need to issue a refund to your client, and you know you don't have the funds to cover it in your PayPal balance, you can add funds to your PayPal Business account through your connected bank account.
To start head to your PayPal dashboard here:
Then click the Add Money button and follow the prompts to transfer the amount needed from your bank account to your PayPal Business account.
The time it takes for the transfer to complete will depend on your bank. To be safe, consider that this could take 3-5 business days, though some banks will be faster.
Issue the refund
After making sure you have the funds available (see above) you can issue a refund directly from the Joist app:
- Open the invoice the payment was made on
- On iOS and Web use the Payments button at the top of the screen. For Android, tap the Green Circle in the bottom right, then choose Payments
- The button to the right of the payment you wish to refund will reveal the option to issue a refund
The refund will process right away, but your client's credit card can take 3-7 business days for the refund to be reflected on their end.