How to Cancel PayPal order as Buyer and Seller?

This guide is for those who are looking to cancel a PayPal order whether payment is done or not.

We'll explore all the steps you've to take as a seller and buyer in different conditions.

    How to Cancel a PayPal Order?

    Here in this guide, we're going to see all possible approaches to cancel an Order in PayPal.

    Possible scenarios could be as follows:

    Condition 1: As a Buyer, you want to cancel your order before payment

    You're a Buyer who wants to cancel a PayPal Order But hasn't made the payment for that specific Order.

    In such conditions, you can simply ask your seller to cancel the Payment or invoice at their end.

    Condition 2: As a Buyer, you want to cancel your order with pending payment

    Here, you're payment is pending and Seller hasn't collected your payment. But, now you want to cancel that payment so it will cancel the order also.

    You'll let the seller know on chat, email, or any other medium that you've canceled the order.

    But how can you do that? It's simple. You just need to visit the Transaction page/Activity page and select the dropdown to cancel the order.

    You can also do that through the PayPal mobile app. Just navigate to Payment Methods > Activity and select the cancel button in front of the transaction.

    Condition 3: As a Buyer, you want to cancel your order after payment

    Now the condition is that you've completed the payment process, waiting for the seller to deliver your order.

    You've to ask your Seller to mark the Order status as Canceled and issue a refund.

    If he's not canceling your order, then you'll need to raise a concern with PayPal. That means just create a Dispute against that Order/payment/transaction.

    Before getting started, keep in mind that raising the case/dispute against the seller will take some time and Paypal will take a fee to investigate your case.

    1. Open the Transaction/Order from the activity tab

    2. Select the Report a problem option and it will open a Resolution center page with your payment

    3. Choose the reason for a dispute

    Raise a case for order cancellation paypal_1

    4. Fill out the Order item details form

    5. Choose the Issue description - "The seller hasn’t issued a refund for a returned item" and hit continue

    seller hasn't released the refund for my cancelled order

    6. Provide details like Date of return & delivery, return reason, tracking number, return amount, etc

    7. Finally select the Yes option for the question(Have you contacted the seller?) and fill in details of seller

    8. Now provide the Supporting document to submit the case

    You'll see the message from Paypal like the case is submitted. They will investigate and get back to you within 21 business days.

    During these 21 days, Seller will take action on the Case and may release your funds if all goes well!

    Condition 4: As a Seller, you want to cancel your customer's order before the payment

    If you are the Seller who is looking to cancel the order when the payment is not done by your customer or your Customer is asking you for order cancellation, you can't cancel the Order.

    But you can cancel the payment that you requested. So, customer requests for specific products or services will get canceled.

    You can cancel the Paypal payments with the following steps.

    1. Navigate to Activity > All Transactions list page

    2. Locate your transaction and select the dropdown as shown in the picture

    cancel order before payment as seller

    3. Choose the Cancel option to cancel your payment

    4. Now, enter the Note to your customer and click the Yes, Cancel Invoice button

    If you're using the Invoice to receive payment from your customers, then visit the Invoicing page(that you'll find under the Pay & Get Paid menu) and Cancel the invoice.

    cancel the order invoice on paypal

    Your payment and order will get canceled and Paypal will notify the Customer that the Order is canceled.

    In this way, you can cancel the order before the payment is completed.

    Condition 5: As a Seller, you want to cancel your customer's order after payment

    In this scenario, Payment and all the things are done. For some reason, your customer is asking you to cancel the order.

    Now, you've to Cancel your PayPal Order as a Seller. How can you do that? Some people will say it's not possible.

    However, there are some ways to mark an order as canceled even after the payment.

    You might find the steps confusing at first time, so follow them carefully.

    Step 1: Discuss with your Customer

    The first thing you've to do that communicate with your customer about this order and make them aware that 'As a seller, we'll mark the order status as Cancelled and then refund the money to you'.

    If they agree, we can continue our process.

    Step 2: Update Order status as Canceled

    Now, we will mark the order as Cancelled by adding the order status as Shipped > Canceled.

    I. Since we can't set the order status to canceled directly, first we'll add Shipped as an Order Status

    update order status as canceled paypal

    II. Then, select the Edit Tracking info option and update the order status as Canceled

    You'll the Canceled as order status at the top and bottom of the Transaction page.

    Step 3: Issue a refund

    Once you've updated the Order status to Cancelled, you're good to go further and issue a refund to your customer or buyer

    I. Open the transaction details page and select the Issue a Refund button as shown in picture

    PayPal cancel order - transaction details page

    II. Check and verify the refund amount and select the Issue refund button

    issued refund to customer for order cancellation

    You'll see the successful message that you've refunded all that amount to your customer!

    Also, you've successfully canceled the Order after the Payment is done by the buyer!


    Is PayPal keeping fees from canceled transactions?

    Yes, Paypal will keep some amount as a fee from canceled transactions that you've made.

    Please refer to the Official PayPal fee structure page.

    Can you cancel an order through PayPal?

    Yes, you can. Mostly buyers can't cancel the order. Since the seller has the authority to cancel the order, buyers need to request the Seller to cancel the orders.

    We've written a complete guide on canceling Paypal orders for different scenarios. Please refer to that guide.

    Can I cancel a pending paypal order?

    Yes, As a buyer, you can cancel the pending Paypal order by canceling the payment from the All Transactions page.

    You can also use a PayPal mobile app and the path is Payment Methods> Activity.

    How to Cancel Paypal Payment on iPhone?

    The steps are the same that we've explained in this guide. You just need to visit the PayPal website or get the PayPal iOS mobile app.