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I'm trying to refund an order that was made from through PayPal Express but whilst on the 'Credit Memo' page the only available option is 'Refund Offline'. This means the refund is only logged on the Magento and not refunded from PayPal.

Are there some settings that need to be in place for this to work? I wasn't able to find any on the Magento 2.1 documentation.

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  • Are you issuing the Creditmemo from the order detail view or the invoice detail view? Only the latter will refer to the online payment and thus display the refund online option.
    – powlomat
    Jan 17, 2018 at 9:38

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I know in Magento 1.9 you have to open the order and then on the left select "Invoice" open it and then select "Credit Memo" this will give you both options at the bottom of the page to "Refund Offline" or "Refund" Online. There are like zero examples of this on the internet most all examples are to issue a Store Credit by refunding offline.

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There are two types of refund:

  1. Online
  2. Offline

In the admin order view, you can see a button called "Credit Memo". Creating a credit memo from here will generate an offline credit memo. This means that if an online payment method was used (example: Paypal, Braintree, Authorize.net), the payment provider will not be contacted to issue the refund, it will happen offline.

An online credit memo (when the external payment provider is contacted to create a refund) can be created from the invoice. To create an online credit memo, go to order, click on the invoices tab, and then click the credit memo. The option of the online credit memo is only available if the payment method is online.

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