Is TRANSACTION_REFUSED permanent?

Not necessarily. PayPal gives no reason, and PlatformDTC keeps it retryable because it can clear.

What's the difference from INSTRUMENT_DECLINED?

INSTRUMENT_DECLINED points at the funding source; TRANSACTION_REFUSED is a refusal of the request with no detail.

PayPal · Decline codes

What does the PayPal TRANSACTION_REFUSED error mean?

Checked October 31, 2026

PayPal's TRANSACTION_REFUSED error means PayPal refused the payment request; its description is simply "The request was refused." No reason is given, and the refusal can be temporary. The buyer can try again later or pick another funding source, and the merchant should space retries out rather than treating it as permanent.

PayPal description: The request was refused.
Type: Soft decline
Who declined: PayPal
Retry: Yes, a few days later; switch method if it repeats
Shopper action: Try again later or use another method
Merchant action: Retry later, spaced out; offer another method
PlatformDTC renewal (Smart retry): PayPal ladder: up to 7 attempts, 3+ days apart, aimed at payday

What PlatformDTC does

PlatformDTC treats TRANSACTION_REFUSED as a retryable generic refusal and deliberately leaves it out of its default stop list, because it can be temporary. With Smart retry on, a PayPal subscription renewal declined this way follows the PayPal ladder: up to 7 attempts, each at least 3 days after the last, moved to the subscriber's next payday when one falls within a week, inside a window of at least 24 days. The subscription is held past due, not cancelled, if every attempt fails.

Why it happens

PayPal's description gives no reason. It can reflect PayPal's own risk checks or a temporary condition.

What the shopper can do

Wait a while and try again, or pay with a card or another method.

What the store can do

Don't treat it as final on the first try; retry over days for subscriptions.

Offer another payment method at checkout.

For developers

On the Orders v2 API the issue appears in details[0].issue of the error body.

Frequently asked questions

Is TRANSACTION_REFUSED permanent?: Not necessarily. PayPal gives no reason, and PlatformDTC keeps it retryable because it can clear.
What's the difference from INSTRUMENT_DECLINED?: INSTRUMENT_DECLINED points at the funding source; TRANSACTION_REFUSED is a refusal of the request with no detail.

Sources

Orders v2 API errors — PayPal