Scope of Article
Refund operation failed
Unable to issue refunds for ACH transactions
Refund operation failed, ‘account is restricted’ (Paypal)
Why do I receive the error “Refund operation failed, ‘account is restricted’ when I try to perform the refund?
Error - You do not have a verified ACH
This error comes up during the refund transactions through Chargebee and this error is thrown when you do not have sufficient funds in your PayPal balance to cover the amount of the refund or your PayPal account does not have an associated verified bank account.
Here is a document on the same from Paypal.
Error: account is restricted
Even though you initiate the refund via Chargebee, the actual refund is processed by Paypal express checkout and Chargebee only relays the error message that is thrown by the gateway.
You can have a look at this online article by PayPal express checkout regarding this error which could be helpful too.
You can reach out to Paypal support on this and they will be able to help you with this error.