# PayPal refund execution > Connect PayPal with your REST app credentials. Approved refunds are paid from the original capture, and every PayPal event is signature-checked. - Canonical URL: https://lumtry.com/connectors/paypal - Last updated: 2026-09-24 Connect PayPal to Lumtry with your own REST app credentials and approved refunds are paid from the original capture in your PayPal account. Lumtry checks the credentials before saving them, sends a request id with every refund so a retry cannot pay twice, and verifies PayPal's signature on each event it receives. ## What it does - Pays approved refunds, full or partial, from the original capture through your own PayPal account. - Tracks refund completions and customer disputes from PayPal's signed events. - Parks a case for a person when a refund fails or a split across several captures is unclear. ## Set it up 1. **Create a PayPal REST app**: In the PayPal developer dashboard, create a REST app for your business account and copy its Client ID and Client Secret. 2. **Connect PayPal**: An Owner or Admin pastes the credentials on the PayPal tile on the Integrations page and picks sandbox or live. 3. **Let Lumtry check the credentials**: Lumtry exchanges them for a token and looks up your merchant id before saving anything. Invalid credentials are not stored. 4. **Publish a policy and watch first**: Publish your refund rules, then run cases in shadow mode until the decisions match what you expect. ## What Lumtry reads - The order and its captures, each in its own currency, to work out what is still refundable. - Refund completion events, checked against PayPal's signature before anything is recorded. - Customer dispute events, so a disputed payment flags its refund case. ## What Lumtry writes - Refunds against the original capture, each with a PayPal request id so a retry cannot pay twice. - Dispute evidence, only after a person approves it, with the Dispute Automation add-on. ## Frequently asked questions ### Where are my PayPal credentials kept? In your workspace's secret store. The Client Secret is never shown again, and the dashboard shows only the last four characters of your merchant id. ### Can I try it in the PayPal sandbox first? Yes. Choose sandbox when you connect, and switch the environment on the PayPal tile when you are ready for live payments. ### Does Lumtry ever charge a customer through PayPal? Only with a saved PayPal wallet: for an exchange that costs more, or to reverse a refund a later step rolled back within 30 days. Without a saved wallet, Lumtry charges nothing and the case waits for a person. ### Can Lumtry respond to PayPal disputes? With the Dispute Automation add-on, on Starter and Growth or included on Scale. The evidence pack is built from data Lumtry already holds and is sent to PayPal only after a person approves it. ## Related - [Home](https://lumtry.com/index.md): Decide refunds by a versioned policy, send the exceptions to your team in Slack or the dashboard, and keep every step on the record. Start free. - [Integrations](https://lumtry.com/connectors.md): Connect Lumtry to Shopify, WooCommerce, BigCommerce, Amazon, eBay, Stripe, PayPal, Slack, Gorgias, Zendesk, EasyPost and Shippo. Browse every integration. - [Register a connector](https://lumtry.com/connectors/register.md): Directories and AI assistant vendors register their OAuth client metadata here. The team reviews every registration before a workspace can authorize it. - [Shopify](https://lumtry.com/connectors/shopify.md): Connect Shopify to Lumtry so refund requests and order details reach one versioned policy, with every decision kept in an append-only audit trail. - [WooCommerce](https://lumtry.com/connectors/woocommerce.md): Connect WooCommerce with REST API keys. Lumtry opens a case when a refund is recorded, decides it by policy and pays through Stripe or PayPal. - [BigCommerce](https://lumtry.com/connectors/bigcommerce.md): Connect BigCommerce with an API account or the app. Each refund on an order becomes a case your policy decides, paid through Stripe or PayPal. - [Amazon Returns](https://lumtry.com/connectors/amazon.md): Bring Amazon return and refund notifications into one policy-driven queue. Set up with the Lumtry team; nothing is written back to Amazon. - [eBay](https://lumtry.com/connectors/ebay.md): Bring eBay return and refund notifications into one policy-driven queue. Set up with the Lumtry team; nothing is written back to eBay. - [Stripe](https://lumtry.com/connectors/stripe.md): Connect Stripe through Stripe Connect. Approved refunds are paid from the original charge with an idempotency key, so a retry never pays twice. - [Slack](https://lumtry.com/connectors/slack.md): Approve or deny held refunds from a Slack channel. Lumtry checks the signature, a single-use token and the approver before it acts. - [Gorgias](https://lumtry.com/connectors/gorgias.md): Tag a Gorgias ticket and Lumtry opens a refund case for the matching order, then posts each step back as an internal note. - [Zendesk](https://lumtry.com/connectors/zendesk.md): Tag a Zendesk ticket and Lumtry opens a refund case for the matching order, then posts each step back as a private comment. - [Twilio](https://lumtry.com/connectors/twilio.md): PIN-checked phone approvals for held refunds to US numbers, placed through Twilio by Lumtry. A voice approvals add-on on paid plans. - [Telnyx](https://lumtry.com/connectors/telnyx.md): PIN-checked phone approvals for held refunds to Canadian numbers, placed through Telnyx by Lumtry. A voice approvals add-on on paid plans. - [EasyPost](https://lumtry.com/connectors/easypost.md): Buy prepaid return labels on your EasyPost account and release the refund when the carrier shows the return delivered. - [Shippo](https://lumtry.com/connectors/shippo.md): Buy prepaid return labels on your Shippo account and release the refund when the carrier shows the return delivered. - [ShipBob](https://lumtry.com/connectors/shipbob.md): Let ShipBob's return scan release the refund and grade each item. Part of the Warehouse Sync add-on on Starter, Growth and Scale. - [ShipHero](https://lumtry.com/connectors/shiphero.md): Let ShipHero's return updates release the refund and grade each item. Part of the Warehouse Sync add-on on Starter, Growth and Scale. - [Pricing](https://lumtry.com/pricing.md): Lumtry plans by case volume and seats, from Free to Enterprise, with add-ons and capped outcome fees. Start free or hear when billing opens. - [MCP server](https://lumtry.com/developers/mcp.md): Connect an AI assistant or your own agent to your refund workspace through the Model Context Protocol. Read cases and propose actions, never move money. - [Trust](https://lumtry.com/trust.md): How Lumtry secures merchant data, keeps AI inside a deterministic refund policy, lists every sub-processor and explains data flow and retention. Review it. - [llms.txt](https://lumtry.com/llms.txt)