PayPal - Why the system is automatically refunding my transactions?

When there is a mistmatch in currencies between Cloudbeds PMS aby PayPal, the transaction will not be processed automatically by PayPal, user must claim it manually otherwise it will be refunded back to the sender account after a month.

This article describes the issue and the solution to prevent this situation in the future.

Why does it happen?

This situation happens only with Not completed payments on PayPal side.

The Not completed payments situation is due to a mismatch in the currency settings between PayPal and Cloudbeds PMS. If the currencies don't match, you need to manually accept each payment on your PayPal account.

Example:

  • The property has PLN currency configured on their PayPal account. It means that the account automatically accepts PLN transactions with no additional actions.
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If a guest makes a reservation using a different currency, the reservation will be confirmed, but the PayPal transaction will be displayed as Unclaimed, meaning:

  1. The reservation was created on Cloudbeds PMS.
  2. On the PaylPal account, the transaction was not confirmed and marked as Unclaimed.
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  1. On Cloudbeds PMS account, the transaction will be displayed on the Folio only if you tick Pending in the filter Transactions.

Example:

If you (PayPal account owner) don't access PayPal and accept (claim) this transaction manually, the amount will be automatically refunded after 1 month to the sender account.

How to accept the payment and prevent this situation?

The PayPal account owner needs to access their account and claim the payment:

  1. On PayPal, click the Summary tab.
  2. Click on the desired transaction.
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  1. Click to accept the transaction.
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  1. Choose the desired option and click Submit.
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Once accepted, the transaction will be displayed as Posted inside the folio on Cloudbeds PMS and no refund will be processed.

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