How to Handle Paypal Adaptive Refund Errors

Because Paypal Adaptive payments may instantly pay affiliates or JV partners, if either of those parties “denies” or has an “unclaimed” amount associated to the transaction and you attempt to refund that purchase, Paypal will refuse to refund the relevant amount from those parties.In this case, Paykickstart will alert you to the errors encountered and ask your what action to take:

Your first option, should it be possible, is to attempt to refund the full amount from the vendor’s Paypal account. Should you choose this option, it will be up to the vendor to recover the funds from any partners / affiliates which Paypal couldn’t refund from.

The second option is to handle the refund manually in any way you see fit, and simple have Paykickstart mark the transaction as refunded – this option does NOT affect the associated Paypal payments in any way – it simply “flags” the transaction as refunded in Paykickstart and nothing more.

Here’s a breakdown of the errors Paypal returns and the explanation of what each means:

Status of the refund. Value is:

  • REFUNDED — Refund successfully completed
  • REFUNDED_PENDING — Refund awaiting transfer of funds; for example, a refund paid by eCheck.
  • NOT_PAID — Payment was never made; therefore, it cannot be refunded.
  • ALREADY_REVERSED_OR_REFUNDED — Request rejected because the refund was already made, or the payment was reversed prior to this request.
  • NO_API_ACCESS_TO_RECEIVER — Request cannot be completed because you do not have third-party access from the receiver to make the refund.
  • REFUND_NOT_ALLOWED — Refund is not allowed.
  • INSUFFICIENT_BALANCE — Request rejected because the receiver from which the refund is to be paid does not have sufficient funds or the funding source cannot be used to make a refund.
  • AMOUNT_EXCEEDS_REFUNDABLE — Request rejected because you attempted to refund more than the remaining amount of the payment
  • PREVIOUS_REFUND_PENDING — Request rejected because a refund is currently pending for this part of the payment
  • NOT_PROCESSED — Request rejected because it cannot be processed at this time
  • REFUND_ERROR — Request rejected because of an internal error
  • PREVIOUS_REFUND_ERROR — Request rejected because another part of this refund caused an internal error.

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