Refunds work in both directions, and the plugin makes sure a refund is never recorded twice.
Refunding from WooCommerce
- Open the order (WooCommerce → Orders) and click Refund.
- Enter the amount, or the quantities and amounts of the products to refund.
- Click Refund via Paddle.
The refund is sent to Paddle and noted on the order. On Paddle Billing, partial refunds are put on the Paddle lines of the products you refunded. This works for renewal orders too.
If Paddle refuses the request straight away (for example it is unreachable, or the amount is more than is left to refund), WooCommerce shows the error and no refund is recorded.
- Billing: the order notes follow the refund: “Paddle approved refund …”.
- Classic: when Paddle processes the refund, the Payment Refunded alert adds a note: “Paddle processed the refund recorded in WooCommerce: …”.
If Paddle rejects a refund (Billing)
A note warns you: “Paddle REJECTED refund …: the customer was NOT refunded, although WooCommerce shows the refund.” Refund the customer in Paddle, or delete the refund on the order.
Refund manually
Refund manually records the refund in WooCommerce only. The note reminds you to refund the customer in the Paddle dashboard; when Paddle reports that refund, it is matched to this one instead of being recorded twice.
Refunding in Paddle
Refunds made in the Paddle dashboard are recorded in WooCommerce automatically once Paddle approves them, with a note giving the Paddle reference.
- Stock is not restocked.
- A full refund marks the order Refunded.
- On Billing, partial refunds are matched to the refunded products where possible.
- On Classic, a VAT-only refund is noted but leaves the order unchanged. Classic accounts need the Payment Refunded and Subscription Payment Refunded alerts for this.
Chargebacks and disputes
When Paddle reports a chargeback (Billing) or a payment dispute (Classic), the order is put On hold and a note is added. On Billing, a chargeback warning and a reversed chargeback are noted on the order too. Paddle handles the dispute itself, as merchant of record.