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PayPal vs Venmo Refund Process

Side-by-side comparison of refund processs, conditions, and refund timelines.·Last updated: 2026-03-19

Quick Summary

PayPal has a 180 days from the payment date (for sellers to issue a refund) refund window with Varies — contact provider for estimated timeline processing, while Venmo offers Varies by merchant policy with up to 5 business days to process for refunds to a bank or card; 1-5 business days once merchant issues refund processing. See the full breakdown below.

Refund Conditions

PayPal

  • Buyer must contact the seller to request a refund
  • If the payment was personal or made with a voucher or gift card, only the full refund amount can be issued by the seller
  • Transaction fees paid by the seller when receiving the original payment are not returned for refunded goods or services payments

Venmo

  • Specific refund policies for in-store QR code purchases are determined by the merchant, not Venmo.
  • Venmo's payment processing fee for business profiles is not returned to the business (or buyer) when a payment is refunded.
  • To issue a full refund from a business profile, enough money must be in the Venmo account to cover the received amount plus the business profile fee.
  • Refunds can only be funded by money in the Venmo account for automated in-app refunds.
  • If a refund has been pending for longer than 30 minutes, contact Venmo support.
  • Refund amount may vary by merchant, as some can choose to provide a refund for more than the original purchase amount.

Refund Steps

PayPal

  • Contact the seller directly to request a refund for a completed payment
  • To find seller contact details, go to Activity, select the payment, and use the contact information provided
  • If a refund is not received, open a dispute in your Resolution Centre
  • If the dispute cannot be resolved, escalate it to a claim within 20 days

Venmo

  • To refund a customer as a business: locate their payment in the app, then select the option to refund.
  • Check the status of a pending refund by tapping on the refund from your Money tab.
  • For in-store QR code purchase refunds, show the merchant the refund barcode on your email receipt from Venmo.
  • Contact the merchant directly for questions about the timing of your refund.
  • If unable to come to a resolution with the business, contact Venmo Support via the app (Me > Settings > Get Help > Chat With Us) and ask for an agent.

Refund Methods

PayPal

  • bank
  • credit card
  • PayPal account

Venmo

  • original payment method (Venmo account, bank account, debit card, or credit card)
  • Venmo account
  • Venmo Credits

Partial Refunds

PayPal

  • Partial refunds are possible for non-personal payments
  • For personal payments or payments made with a voucher/gift card, only full refunds can be issued through the standard process; to partially refund, send a separate personal payment with a note

Venmo

  • For businesses, a partial refund can be completed through the app if there are sufficient funds in the Venmo account.
  • If a business does not have enough money in their business profile for a full refund, they can create a new payment using a bank account or card on file for a partial refund, mentioning the original transaction in the payment note.

Dispute Process

PayPal

  • Open a dispute in your Resolution Centre if a refund is not received
  • Message the seller through PayPal within the dispute to try to resolve issues
  • If the dispute is unresolved, escalate it to a claim within 20 days
  • In a claim, PayPal investigates the case and decides the outcome

Venmo

  • If you are unable to come to a resolution with the business, you can contact Venmo Support.
  • While Venmo does not guarantee a refund, they will work with you to help you come to a solution.
  • Contact support via the Venmo app: Go to Me > Settings > Get Help > Chat With Us and ask for an agent.

Additional Notes

PayPal

  • Refunded money will return to its original payment method (bank, credit card, or PayPal account)
  • Refunds cannot be cancelled once sent by the seller

Venmo

  • When using the in-app refund button, the original payment and refund are marked “Refunded” and linked via payment details.
  • Once a refund is complete, its status will update to 'Completed' in the app, and both you and your customer will be notified via email.
  • If a deposit followed by a withdrawal from the same merchant appears in your transaction history, it generally means the merchant has canceled or reversed the transaction.
  • Sometimes, for various reasons, your refund will be credited to your Venmo account even if another payment method was used for the original purchase.