How to return security deposit to each customer?

[sashasdecor]

Our customers pay a security deposit on each payment, which we return after the customer returns our rental items. How can we do this with Paypal? Should we issue partial refunds on each invoice as the way of returning security deposit? and if so, would a refund on every single invoice raise any suspicions or be an issue with Paypal?

[PayPal_RachelK]

Hi @sashasdecor,

Welcome to the PayPal Community and thank you for your post!
 

I do understand your concern with this. PayPal does not currently have a function for merchants to return deposits to their customer. If you need to return your customers deposits to them, the best thing to do would be issue a partial refund to your buyers. This can be done by following the steps here. 

Issuing refunds should not negatively affect your PayPal account. Multiple open disputes can effect your account, however, if you return your deposits on time and provide your customers with the item/service they purchased then there should be no reason for them to open disputes against you. 

If you have any further concerns', please don't hesitate to contact our Customer Support. 

I hope this helps!

- Rachel