Usually, you can issue a refund using the same payment method the buyer used to purchase the item. Even so, talk to your buyer to work out the best way to refund their money.
Contacting your buyer
To contact your buyer through eBay:
Click My eBay at the top of most eBay pages. You may be asked to sign in.
Click the Sold link on the left side of the page under the Sell heading.
Locate the item for which you are issuing a refund.
From the Actions column drop-down menu, select Contact Buyer.
Complete the form with your message to the buyer and click the Send button.
Note: If you're using Selling Manager or Selling Manager Pro, select the box next to the item, and then click the Email button at the top of the Sold Items section.
You can also request your buyer's email address and phone number.
Issuing the refund for electronic payments
To issue a refund with PayPal:
Log in to your PayPal account.
On the My Account Overview page, find the item you want to refund, and click the Details link.
If you don't see the item that needs a refund, click the All Activity link.
On the Transaction Details page, click the Issue a refund link.
Follow the directions to issue a refund to your buyer.
Note: If a buyer opened a case for an item you sold, you should go to the Resolution Center to issue a refund.
This refund method is only available for 60 days after the end of the transaction. If the transaction you want to refund occurred more than 60 days ago, follow these instructions:
Click the Send Money tab located at the top of most PayPal pages.
Enter the information required to send money to the buyer.
Click the Continue button.
Review the information on the Confirmation page for accuracy, then click the Send Money button to complete the refund.
If you have a PayPal question, contact PayPal Customer Support.
To issue a refund through ProPay
With a ProPay account, you can process a refund on the credit card that was used for the transaction. There is a small fee ($0.35) for processing the return, so make sure you have enough money in your ProPay account to cover this.
See ProPay’s information about how to refund a credit card.
Receiving a final value fee credit
To receive a final value fee credit to your seller's account, you need to open and close a case in our Resolution Center. (Giving your buyer a refund doesn't automatically result in a final value fee credit.) Depending on how you close the case, you may receive a final value fee credit. Learn more about the credit and requesting a final value fee credit.
If you started out trying to get the buyer to pay, but then you both decided to end the transaction and refund the buyer, see what to do when a buyer doesn't pay (unpaid item process).
If you need to cancel the transaction because you as the seller have a reason you can't complete the sale (like the item is broken, gone, or sold to someone else), see canceling a transaction.