diff --git a/modules/ppcp-api-client/services.php b/modules/ppcp-api-client/services.php
index 199b14e78..1b3174ac8 100644
--- a/modules/ppcp-api-client/services.php
+++ b/modules/ppcp-api-client/services.php
@@ -23,6 +23,7 @@ use WooCommerce\PayPalCommerce\ApiClient\Factory\AddressFactory;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\AmountFactory;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\ApplicationContextFactory;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\AuthorizationFactory;
+use WooCommerce\PayPalCommerce\ApiClient\Factory\CaptureFactory;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\ItemFactory;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\OrderFactory;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\PatchCollectionFactory;
@@ -214,6 +215,11 @@ return array(
 	'api.factory.webhook'                   => static function ( $container ): WebhookFactory {
 		return new WebhookFactory();
 	},
+	'api.factory.capture'                   => static function ( $container ): CaptureFactory {
+
+		$amount_factory   = $container->get( 'api.factory.amount' );
+		return new CaptureFactory( $amount_factory );
+	},
 	'api.factory.purchase-unit'             => static function ( $container ): PurchaseUnitFactory {
 
 		$amount_factory   = $container->get( 'api.factory.amount' );
@@ -277,7 +283,8 @@ return array(
 	},
 	'api.factory.payments'                  => static function ( $container ): PaymentsFactory {
 		$authorizations_factory = $container->get( 'api.factory.authorization' );
-		return new PaymentsFactory( $authorizations_factory );
+		$capture_factory        = $container->get( 'api.factory.capture' );
+		return new PaymentsFactory( $authorizations_factory, $capture_factory );
 	},
 	'api.factory.authorization'             => static function ( $container ): AuthorizationFactory {
 		return new AuthorizationFactory();
diff --git a/modules/ppcp-api-client/src/Endpoint/class-paymentsendpoint.php b/modules/ppcp-api-client/src/Endpoint/class-paymentsendpoint.php
index 7ee7daaa3..4011668c1 100644
--- a/modules/ppcp-api-client/src/Endpoint/class-paymentsendpoint.php
+++ b/modules/ppcp-api-client/src/Endpoint/class-paymentsendpoint.php
@@ -11,6 +11,7 @@ namespace WooCommerce\PayPalCommerce\ApiClient\Endpoint;
 
 use WooCommerce\PayPalCommerce\ApiClient\Authentication\Bearer;
 use WooCommerce\PayPalCommerce\ApiClient\Entity\Authorization;
+use WooCommerce\PayPalCommerce\ApiClient\Entity\Refund;
 use WooCommerce\PayPalCommerce\ApiClient\Exception\PayPalApiException;
 use WooCommerce\PayPalCommerce\ApiClient\Exception\RuntimeException;
 use WooCommerce\PayPalCommerce\ApiClient\Factory\AuthorizationFactory;
@@ -188,4 +189,63 @@ class PaymentsEndpoint {
 		$authorization = $this->authorizations_factory->from_paypal_response( $json );
 		return $authorization;
 	}
+
+	/**
+	 * Refunds a payment.
+	 *
+	 * @param Refund $refund The refund to be processed.
+	 *
+	 * @return bool
+	 * @throws RuntimeException If the request fails.
+	 */
+	public function refund( Refund $refund ) : bool {
+		$bearer = $this->bearer->bearer();
+		$url    = trailingslashit( $this->host ) . 'v2/payments/captures/' . $refund->for_capture()->id() . '/refund';
+		$args   = array(
+			'method'  => 'POST',
+			'headers' => array(
+				'Authorization' => 'Bearer ' . $bearer->token(),
+				'Content-Type'  => 'application/json',
+				'Prefer'        => 'return=representation',
+			),
+			'body'    => wp_json_encode( $refund->to_array() ),
+		);
+
+		$response = $this->request( $url, $args );
+		$json     = json_decode( $response['body'] );
+
+		if ( is_wp_error( $response ) ) {
+			$error = new RuntimeException(
+				__( 'Could not refund payment.', 'paypal-payments-for-woocommerce' )
+			);
+			$this->logger->log(
+				'warning',
+				$error->getMessage(),
+				array(
+					'args'     => $args,
+					'response' => $response,
+				)
+			);
+			throw $error;
+		}
+
+		$status_code = (int) wp_remote_retrieve_response_code( $response );
+		if ( 201 !== $status_code ) {
+			$error = new PayPalApiException(
+				$json,
+				$status_code
+			);
+			$this->logger->log(
+				'warning',
+				$error->getMessage(),
+				array(
+					'args'     => $args,
+					'response' => $response,
+				)
+			);
+			throw $error;
+		}
+
+		return true;
+	}
 }
diff --git a/modules/ppcp-api-client/src/Entity/class-capture.php b/modules/ppcp-api-client/src/Entity/class-capture.php
new file mode 100644
index 000000000..9aad9e029
--- /dev/null
+++ b/modules/ppcp-api-client/src/Entity/class-capture.php
@@ -0,0 +1,197 @@
+<?php
+/**
+ * The capture entity.
+ *
+ * @link https://developer.paypal.com/docs/api/orders/v2/#definition-capture
+ *
+ * @package Woocommerce\PayPalCommerce\ApiClient\Entity
+ */
+
+declare( strict_types=1 );
+
+namespace Woocommerce\PayPalCommerce\ApiClient\Entity;
+
+/**
+ * Class Capture
+ */
+class Capture {
+
+	/**
+	 * The ID.
+	 *
+	 * @var string
+	 */
+	private $id;
+
+	/**
+	 * The status.
+	 *
+	 * @var string
+	 */
+	private $status;
+
+	/**
+	 * The status details.
+	 *
+	 * @var string
+	 */
+	private $status_details;
+
+	/**
+	 * The amount.
+	 *
+	 * @var Amount
+	 */
+	private $amount;
+
+	/**
+	 * Whether this is the final capture or not.
+	 *
+	 * @var bool
+	 */
+	private $final_capture;
+
+	/**
+	 * The seller protection.
+	 *
+	 * @var string
+	 */
+	private $seller_protection;
+
+	/**
+	 * The invoice id.
+	 *
+	 * @var string
+	 */
+	private $invoice_id;
+
+	/**
+	 * The custom id.
+	 *
+	 * @var string
+	 */
+	private $custom_id;
+
+	/**
+	 * Capture constructor.
+	 *
+	 * @param string $id The ID.
+	 * @param string $status The status.
+	 * @param string $status_details The status details.
+	 * @param Amount $amount The amount.
+	 * @param bool   $final_capture The final capture.
+	 * @param string $seller_protection The seller protection.
+	 * @param string $invoice_id The invoice id.
+	 * @param string $custom_id The custom id.
+	 */
+	public function __construct(
+		string $id,
+		string $status,
+		string $status_details,
+		Amount $amount,
+		bool $final_capture,
+		string $seller_protection,
+		string $invoice_id,
+		string $custom_id
+	) {
+
+		$this->id                = $id;
+		$this->status            = $status;
+		$this->status_details    = $status_details;
+		$this->amount            = $amount;
+		$this->final_capture     = $final_capture;
+		$this->seller_protection = $seller_protection;
+		$this->invoice_id        = $invoice_id;
+		$this->custom_id         = $custom_id;
+	}
+
+	/**
+	 * Returns the ID.
+	 *
+	 * @return string
+	 */
+	public function id() : string {
+		return $this->id;
+	}
+
+	/**
+	 * Returns the status.
+	 *
+	 * @return string
+	 */
+	public function status() : string {
+		return $this->status;
+	}
+
+	/**
+	 * Returns the status details object.
+	 *
+	 * @return \stdClass
+	 */
+	public function status_details() : \stdClass {
+		return (object) array( 'reason' => $this->status_details );
+	}
+
+	/**
+	 * Returns the amount.
+	 *
+	 * @return Amount
+	 */
+	public function amount() : Amount {
+		return $this->amount;
+	}
+
+	/**
+	 * Returns whether this is the final capture or not.
+	 *
+	 * @return bool
+	 */
+	public function final_capture() : bool {
+		return $this->final_capture;
+	}
+
+	/**
+	 * Returns the seller protection object.
+	 *
+	 * @return \stdClass
+	 */
+	public function seller_protection() : \stdClass {
+		return (object) array( 'status' => $this->seller_protection );
+	}
+
+	/**
+	 * Returns the invoice id.
+	 *
+	 * @return string
+	 */
+	public function invoice_id() : string {
+		return $this->invoice_id;
+	}
+
+	/**
+	 * Returns the custom id.
+	 *
+	 * @return string
+	 */
+	public function custom_id() : string {
+		return $this->custom_id;
+	}
+
+	/**
+	 * Returns the entity as array.
+	 *
+	 * @return array
+	 */
+	public function to_array() : array {
+		return array(
+			'id'                => $this->id(),
+			'status'            => $this->status(),
+			'status_details'    => (array) $this->status_details(),
+			'amount'            => $this->amount()->to_array(),
+			'final_capture'     => $this->final_capture(),
+			'seller_protection' => (array) $this->seller_protection(),
+			'invoice_id'        => $this->invoice_id(),
+			'custom_id'         => $this->custom_id(),
+		);
+	}
+}
diff --git a/modules/ppcp-api-client/src/Entity/class-payments.php b/modules/ppcp-api-client/src/Entity/class-payments.php
index 75febd6b6..d5e051f88 100644
--- a/modules/ppcp-api-client/src/Entity/class-payments.php
+++ b/modules/ppcp-api-client/src/Entity/class-payments.php
@@ -21,13 +21,34 @@ class Payments {
 	 */
 	private $authorizations;
 
+	/**
+	 * The Captures.
+	 *
+	 * @var Capture[]
+	 */
+	private $captures;
+
 	/**
 	 * Payments constructor.
 	 *
-	 * @param Authorization ...$authorizations The Authorizations.
+	 * @param array $authorizations The Authorizations.
+	 * @param array $captures The Captures.
 	 */
-	public function __construct( Authorization ...$authorizations ) {
+	public function __construct( array $authorizations, array $captures ) {
+		foreach ( $authorizations as $key => $authorization ) {
+			if ( is_a( $authorization, Authorization::class ) ) {
+				continue;
+			}
+			unset( $authorizations[ $key ] );
+		}
+		foreach ( $captures as $key => $capture ) {
+			if ( is_a( $capture, Capture::class ) ) {
+				continue;
+			}
+			unset( $captures[ $key ] );
+		}
 		$this->authorizations = $authorizations;
+		$this->captures       = $captures;
 	}
 
 	/**
@@ -43,6 +64,12 @@ class Payments {
 				},
 				$this->authorizations()
 			),
+			'captures'       => array_map(
+				static function ( Capture $capture ): array {
+					return $capture->to_array();
+				},
+				$this->captures()
+			),
 		);
 	}
 
@@ -54,4 +81,13 @@ class Payments {
 	public function authorizations(): array {
 		return $this->authorizations;
 	}
+
+	/**
+	 * Returns the Captures.
+	 *
+	 * @return Capture[]
+	 **/
+	public function captures(): array {
+		return $this->captures;
+	}
 }
diff --git a/modules/ppcp-api-client/src/Entity/class-refund.php b/modules/ppcp-api-client/src/Entity/class-refund.php
new file mode 100644
index 000000000..71c2a2f56
--- /dev/null
+++ b/modules/ppcp-api-client/src/Entity/class-refund.php
@@ -0,0 +1,118 @@
+<?php
+/**
+ * The refund object.
+ *
+ * @package WooCommerce\PayPalCommerce\ApiClient\Entity
+ */
+
+declare( strict_types=1 );
+
+namespace WooCommerce\PayPalCommerce\ApiClient\Entity;
+
+/**
+ * Class Refund
+ */
+class Refund {
+
+	/**
+	 * The Capture.
+	 *
+	 * @var Capture
+	 */
+	private $capture;
+
+	/**
+	 * The invoice id.
+	 *
+	 * @var string
+	 */
+	private $invoice_id;
+
+	/**
+	 * The note to the payer.
+	 *
+	 * @var string
+	 */
+	private $note_to_payer;
+
+	/**
+	 * The Amount.
+	 *
+	 * @var Amount|null
+	 */
+	private $amount;
+
+	/**
+	 * Refund constructor.
+	 *
+	 * @param Capture     $capture The capture where the refund is supposed to be applied at.
+	 * @param string      $invoice_id The invoice id.
+	 * @param string      $note_to_payer The note to the payer.
+	 * @param Amount|null $amount The Amount.
+	 */
+	public function __construct(
+		Capture $capture,
+		string $invoice_id,
+		string $note_to_payer = '',
+		Amount $amount = null
+	) {
+		$this->capture       = $capture;
+		$this->invoice_id    = $invoice_id;
+		$this->note_to_payer = $note_to_payer;
+		$this->amount        = $amount;
+	}
+
+	/**
+	 * Returns the capture for the refund.
+	 *
+	 * @return Capture
+	 */
+	public function for_capture() : Capture {
+		return $this->capture;
+	}
+
+	/**
+	 * Return the invoice id.
+	 *
+	 * @return string
+	 */
+	public function invoice_id() : string {
+		return $this->invoice_id;
+	}
+
+	/**
+	 * Returns the note to the payer.
+	 *
+	 * @return string
+	 */
+	public function note_to_payer() : string {
+		return $this->note_to_payer;
+	}
+
+	/**
+	 * Returns the Amount.
+	 *
+	 * @return Amount|null
+	 */
+	public function amount() {
+		return $this->amount;
+	}
+
+	/**
+	 * Returns the object as array.
+	 *
+	 * @return array
+	 */
+	public function to_array() : array {
+		$data = array(
+			'invoice_id' => $this->invoice_id(),
+		);
+		if ( $this->note_to_payer() ) {
+			$data['note_to_payer'] = $this->note_to_payer();
+		}
+		if ( $this->amount() ) {
+			$data['amount'] = $this->amount()->to_array();
+		}
+		return $data;
+	}
+}
diff --git a/modules/ppcp-api-client/src/Factory/class-capturefactory.php b/modules/ppcp-api-client/src/Factory/class-capturefactory.php
new file mode 100644
index 000000000..01e0ff29d
--- /dev/null
+++ b/modules/ppcp-api-client/src/Factory/class-capturefactory.php
@@ -0,0 +1,56 @@
+<?php
+/**
+ * The capture factory.
+ *
+ * @package WooCommerce\PayPalCommerce\ApiClient\Factory
+ */
+
+declare( strict_types=1 );
+
+namespace WooCommerce\PayPalCommerce\ApiClient\Factory;
+
+use Woocommerce\PayPalCommerce\ApiClient\Entity\Capture;
+
+/**
+ * Class CaptureFactory
+ */
+class CaptureFactory {
+
+	/**
+	 * The Amount factory.
+	 *
+	 * @var AmountFactory
+	 */
+	private $amount_factory;
+
+	/**
+	 * CaptureFactory constructor.
+	 *
+	 * @param AmountFactory $amount_factory The amount factory.
+	 */
+	public function __construct( AmountFactory $amount_factory ) {
+
+		$this->amount_factory = $amount_factory;
+	}
+
+	/**
+	 * Returns the capture object based off the PayPal response.
+	 *
+	 * @param \stdClass $data The PayPal response.
+	 *
+	 * @return Capture
+	 */
+	public function from_paypal_response( \stdClass $data ) : Capture {
+
+		return new Capture(
+			(string) $data->id,
+			(string) $data->status,
+			(string) $data->status_details->reason,
+			$this->amount_factory->from_paypal_response( $data->amount ),
+			(bool) $data->final_capture,
+			(string) $data->seller_protection->status,
+			(string) $data->invoice_id,
+			(string) $data->custom_id
+		);
+	}
+}
diff --git a/modules/ppcp-api-client/src/Factory/class-paymentsfactory.php b/modules/ppcp-api-client/src/Factory/class-paymentsfactory.php
index 241fc57eb..353c71f44 100644
--- a/modules/ppcp-api-client/src/Factory/class-paymentsfactory.php
+++ b/modules/ppcp-api-client/src/Factory/class-paymentsfactory.php
@@ -10,6 +10,7 @@ declare(strict_types=1);
 namespace WooCommerce\PayPalCommerce\ApiClient\Factory;
 
 use WooCommerce\PayPalCommerce\ApiClient\Entity\Authorization;
+use Woocommerce\PayPalCommerce\ApiClient\Entity\Capture;
 use WooCommerce\PayPalCommerce\ApiClient\Entity\Payments;
 
 /**
@@ -24,16 +25,26 @@ class PaymentsFactory {
 	 */
 	private $authorization_factory;
 
+	/**
+	 * The Capture factory.
+	 *
+	 * @var CaptureFactory
+	 */
+	private $capture_factory;
+
 	/**
 	 * PaymentsFactory constructor.
 	 *
-	 * @param AuthorizationFactory $authorization_factory The AuthorizationFactory.
+	 * @param AuthorizationFactory $authorization_factory The Authorization factory.
+	 * @param CaptureFactory       $capture_factory The Capture factory.
 	 */
 	public function __construct(
-		AuthorizationFactory $authorization_factory
+		AuthorizationFactory $authorization_factory,
+		CaptureFactory $capture_factory
 	) {
 
 		$this->authorization_factory = $authorization_factory;
+		$this->capture_factory       = $capture_factory;
 	}
 
 	/**
@@ -50,7 +61,13 @@ class PaymentsFactory {
 			},
 			isset( $data->authorizations ) ? $data->authorizations : array()
 		);
-		$payments       = new Payments( ...$authorizations );
+		$captures       = array_map(
+			function ( \stdClass $authorization ): Capture {
+				return $this->capture_factory->from_paypal_response( $authorization );
+			},
+			isset( $data->captures ) ? $data->captures : array()
+		);
+		$payments       = new Payments( $authorizations, $captures );
 		return $payments;
 	}
 }
diff --git a/modules/ppcp-wc-gateway/services.php b/modules/ppcp-wc-gateway/services.php
index 6928768ca..f0b3dd753 100644
--- a/modules/ppcp-wc-gateway/services.php
+++ b/modules/ppcp-wc-gateway/services.php
@@ -25,6 +25,7 @@ use WooCommerce\PayPalCommerce\WcGateway\Notice\AuthorizeOrderActionNotice;
 use WooCommerce\PayPalCommerce\WcGateway\Notice\ConnectAdminNotice;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\AuthorizedPaymentsProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\OrderProcessor;
+use WooCommerce\PayPalCommerce\WcGateway\Processor\RefundProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SectionsRenderer;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\Settings;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SettingsListener;
@@ -36,9 +37,11 @@ return array(
 		$order_processor     = $container->get( 'wcgateway.order-processor' );
 		$settings_renderer   = $container->get( 'wcgateway.settings.render' );
 		$authorized_payments = $container->get( 'wcgateway.processor.authorized-payments' );
-		$notice             = $container->get( 'wcgateway.notice.authorize-order-action' );
-		$settings           = $container->get( 'wcgateway.settings' );
+		$notice              = $container->get( 'wcgateway.notice.authorize-order-action' );
+		$settings            = $container->get( 'wcgateway.settings' );
 		$session_handler     = $container->get( 'session.handler' );
+		$refund_processor    = $container->get( 'wcgateway.processor.refunds' );
+		$state               = $container->get( 'onboarding.state' );
 
 		return new PayPalGateway(
 			$settings_renderer,
@@ -46,7 +49,9 @@ return array(
 			$authorized_payments,
 			$notice,
 			$settings,
-			$session_handler
+			$session_handler,
+			$refund_processor,
+			$state
 		);
 	},
 	'wcgateway.credit-card-gateway'                => static function ( $container ): CreditCardGateway {
@@ -57,6 +62,8 @@ return array(
 		$settings            = $container->get( 'wcgateway.settings' );
 		$module_url          = $container->get( 'wcgateway.url' );
 		$session_handler     = $container->get( 'session.handler' );
+		$refund_processor    = $container->get( 'wcgateway.processor.refunds' );
+		$state               = $container->get( 'onboarding.state' );
 		return new CreditCardGateway(
 			$settings_renderer,
 			$order_processor,
@@ -64,7 +71,9 @@ return array(
 			$notice,
 			$settings,
 			$module_url,
-			$session_handler
+			$session_handler,
+			$refund_processor,
+			$state
 		);
 	},
 	'wcgateway.disabler'                           => static function ( $container ): DisableGateways {
@@ -132,6 +141,11 @@ return array(
 			$settings
 		);
 	},
+	'wcgateway.processor.refunds'                  => static function ( $container ): RefundProcessor {
+		$order_endpoint    = $container->get( 'api.endpoint.order' );
+		$payments_endpoint    = $container->get( 'api.endpoint.payments' );
+		return new RefundProcessor( $order_endpoint, $payments_endpoint );
+	},
 	'wcgateway.processor.authorized-payments'      => static function ( $container ): AuthorizedPaymentsProcessor {
 		$order_endpoint    = $container->get( 'api.endpoint.order' );
 		$payments_endpoint = $container->get( 'api.endpoint.payments' );
diff --git a/modules/ppcp-wc-gateway/src/Gateway/class-creditcardgateway.php b/modules/ppcp-wc-gateway/src/Gateway/class-creditcardgateway.php
index e2888a2e1..08ca72ce6 100644
--- a/modules/ppcp-wc-gateway/src/Gateway/class-creditcardgateway.php
+++ b/modules/ppcp-wc-gateway/src/Gateway/class-creditcardgateway.php
@@ -9,10 +9,12 @@ declare(strict_types=1);
 
 namespace WooCommerce\PayPalCommerce\WcGateway\Gateway;
 
+use WooCommerce\PayPalCommerce\Onboarding\State;
 use WooCommerce\PayPalCommerce\Session\SessionHandler;
 use WooCommerce\PayPalCommerce\WcGateway\Notice\AuthorizeOrderActionNotice;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\AuthorizedPaymentsProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\OrderProcessor;
+use WooCommerce\PayPalCommerce\WcGateway\Processor\RefundProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SettingsRenderer;
 use Psr\Container\ContainerInterface;
 
@@ -32,6 +34,13 @@ class CreditCardGateway extends \WC_Payment_Gateway_CC {
 	 */
 	private $module_url;
 
+	/**
+	 * The refund processor.
+	 *
+	 * @var RefundProcessor
+	 */
+	private $refund_processor;
+
 	/**
 	 * CreditCardGateway constructor.
 	 *
@@ -42,6 +51,8 @@ class CreditCardGateway extends \WC_Payment_Gateway_CC {
 	 * @param ContainerInterface          $config The settings.
 	 * @param string                      $module_url The URL to the module.
 	 * @param SessionHandler              $session_handler The Session Handler.
+	 * @param RefundProcessor             $refund_processor The refund processor.
+	 * @param State                       $state The state.
 	 */
 	public function __construct(
 		SettingsRenderer $settings_renderer,
@@ -50,7 +61,9 @@ class CreditCardGateway extends \WC_Payment_Gateway_CC {
 		AuthorizeOrderActionNotice $notice,
 		ContainerInterface $config,
 		string $module_url,
-		SessionHandler $session_handler
+		SessionHandler $session_handler,
+		RefundProcessor $refund_processor,
+		State $state
 	) {
 
 		$this->id                  = self::ID;
@@ -60,6 +73,11 @@ class CreditCardGateway extends \WC_Payment_Gateway_CC {
 		$this->settings_renderer   = $settings_renderer;
 		$this->config              = $config;
 		$this->session_handler     = $session_handler;
+		$this->refund_processor    = $refund_processor;
+
+		if ( $state->current_state() === State::STATE_ONBOARDED ) {
+			$this->supports = array( 'refunds' );
+		}
 		if (
 			defined( 'PPCP_FLAG_SUBSCRIPTION' )
 			&& PPCP_FLAG_SUBSCRIPTION
@@ -67,6 +85,7 @@ class CreditCardGateway extends \WC_Payment_Gateway_CC {
 			&& $this->config->get( 'vault_enabled' )
 		) {
 			$this->supports = array(
+				'refunds',
 				'products',
 				'subscriptions',
 				'subscription_cancellation',
@@ -209,4 +228,24 @@ class CreditCardGateway extends \WC_Payment_Gateway_CC {
 	public function is_available() : bool {
 		return $this->config->has( 'dcc_enabled' ) && $this->config->get( 'dcc_enabled' );
 	}
+
+
+	/**
+	 * Process refund.
+	 *
+	 * If the gateway declares 'refunds' support, this will allow it to refund.
+	 * a passed in amount.
+	 *
+	 * @param  int    $order_id Order ID.
+	 * @param  float  $amount Refund amount.
+	 * @param  string $reason Refund reason.
+	 * @return boolean True or false based on success, or a WP_Error object.
+	 */
+	public function process_refund( $order_id, $amount = null, $reason = '' ) {
+		$order = wc_get_order( $order_id );
+		if ( ! is_a( $order, \WC_Order::class ) ) {
+			return false;
+		}
+		return $this->refund_processor->process( $order, (float) $amount, (string) $reason );
+	}
 }
diff --git a/modules/ppcp-wc-gateway/src/Gateway/class-paypalgateway.php b/modules/ppcp-wc-gateway/src/Gateway/class-paypalgateway.php
index 6bb72fa96..6d2bb96ee 100644
--- a/modules/ppcp-wc-gateway/src/Gateway/class-paypalgateway.php
+++ b/modules/ppcp-wc-gateway/src/Gateway/class-paypalgateway.php
@@ -10,10 +10,12 @@ declare(strict_types=1);
 namespace WooCommerce\PayPalCommerce\WcGateway\Gateway;
 
 use WooCommerce\PayPalCommerce\ApiClient\Exception\PayPalApiException;
+use WooCommerce\PayPalCommerce\Onboarding\State;
 use WooCommerce\PayPalCommerce\Session\SessionHandler;
 use WooCommerce\PayPalCommerce\WcGateway\Notice\AuthorizeOrderActionNotice;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\AuthorizedPaymentsProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\OrderProcessor;
+use WooCommerce\PayPalCommerce\WcGateway\Processor\RefundProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SectionsRenderer;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SettingsRenderer;
 use Psr\Container\ContainerInterface;
@@ -72,6 +74,13 @@ class PayPalGateway extends \WC_Payment_Gateway {
 	 */
 	protected $session_handler;
 
+	/**
+	 * The Refund Processor.
+	 *
+	 * @var RefundProcessor
+	 */
+	private $refund_processor;
+
 	/**
 	 * PayPalGateway constructor.
 	 *
@@ -81,6 +90,8 @@ class PayPalGateway extends \WC_Payment_Gateway {
 	 * @param AuthorizeOrderActionNotice  $notice The Order Action Notice object.
 	 * @param ContainerInterface          $config The settings.
 	 * @param SessionHandler              $session_handler The Session Handler.
+	 * @param RefundProcessor             $refund_processor The Refund Processor.
+	 * @param State                       $state The state.
 	 */
 	public function __construct(
 		SettingsRenderer $settings_renderer,
@@ -88,7 +99,9 @@ class PayPalGateway extends \WC_Payment_Gateway {
 		AuthorizedPaymentsProcessor $authorized_payments_processor,
 		AuthorizeOrderActionNotice $notice,
 		ContainerInterface $config,
-		SessionHandler $session_handler
+		SessionHandler $session_handler,
+		RefundProcessor $refund_processor,
+		State $state
 	) {
 
 		$this->id                  = self::ID;
@@ -98,6 +111,11 @@ class PayPalGateway extends \WC_Payment_Gateway {
 		$this->settings_renderer   = $settings_renderer;
 		$this->config              = $config;
 		$this->session_handler     = $session_handler;
+		$this->refund_processor    = $refund_processor;
+
+		if ( $state->current_state() === State::STATE_ONBOARDED ) {
+			$this->supports = array( 'refunds' );
+		}
 		if (
 			defined( 'PPCP_FLAG_SUBSCRIPTION' )
 			&& PPCP_FLAG_SUBSCRIPTION
@@ -105,6 +123,7 @@ class PayPalGateway extends \WC_Payment_Gateway {
 			&& $this->config->get( 'vault_enabled' )
 		) {
 			$this->supports = array(
+				'refunds',
 				'products',
 				'subscriptions',
 				'subscription_cancellation',
@@ -300,4 +319,23 @@ class PayPalGateway extends \WC_Payment_Gateway {
 			&& self::ID === sanitize_text_field( wp_unslash( $_GET['section'] ) );
 	}
 	// phpcs:enable WordPress.Security.NonceVerification.Recommended
+
+	/**
+	 * Process refund.
+	 *
+	 * If the gateway declares 'refunds' support, this will allow it to refund.
+	 * a passed in amount.
+	 *
+	 * @param  int    $order_id Order ID.
+	 * @param  float  $amount Refund amount.
+	 * @param  string $reason Refund reason.
+	 * @return boolean True or false based on success, or a WP_Error object.
+	 */
+	public function process_refund( $order_id, $amount = null, $reason = '' ) {
+		$order = wc_get_order( $order_id );
+		if ( ! is_a( $order, \WC_Order::class ) ) {
+			return false;
+		}
+		return $this->refund_processor->process( $order, (float) $amount, (string) $reason );
+	}
 }
diff --git a/modules/ppcp-wc-gateway/src/Processor/class-refundprocessor.php b/modules/ppcp-wc-gateway/src/Processor/class-refundprocessor.php
new file mode 100644
index 000000000..e52c8eb76
--- /dev/null
+++ b/modules/ppcp-wc-gateway/src/Processor/class-refundprocessor.php
@@ -0,0 +1,85 @@
+<?php
+/**
+ * Processes refunds started in the WooCommerce environment.
+ *
+ * @package WooCommerce\PayPalCommerce\WcGateway\Processor
+ */
+
+declare( strict_types=1 );
+
+namespace WooCommerce\PayPalCommerce\WcGateway\Processor;
+
+use WooCommerce\PayPalCommerce\ApiClient\Endpoint\OrderEndpoint;
+use WooCommerce\PayPalCommerce\ApiClient\Endpoint\PaymentsEndpoint;
+use WooCommerce\PayPalCommerce\ApiClient\Entity\Amount;
+use WooCommerce\PayPalCommerce\ApiClient\Entity\Money;
+use WooCommerce\PayPalCommerce\ApiClient\Entity\Refund;
+use WooCommerce\PayPalCommerce\ApiClient\Exception\RuntimeException;
+use WooCommerce\PayPalCommerce\WcGateway\Gateway\PayPalGateway;
+
+/**
+ * Class RefundProcessor
+ */
+class RefundProcessor {
+
+	/**
+	 * The order endpoint.
+	 *
+	 * @var OrderEndpoint
+	 */
+	private $order_endpoint;
+
+	/**
+	 * The payments endpoint.
+	 *
+	 * @var PaymentsEndpoint
+	 */
+	private $payments_endpoint;
+
+	/**
+	 * RefundProcessor constructor.
+	 *
+	 * @param OrderEndpoint    $order_endpoint The order endpoint.
+	 * @param PaymentsEndpoint $payments_endpoint The payments endpoint.
+	 */
+	public function __construct( OrderEndpoint $order_endpoint, PaymentsEndpoint $payments_endpoint ) {
+
+		$this->order_endpoint    = $order_endpoint;
+		$this->payments_endpoint = $payments_endpoint;
+	}
+
+	/**
+	 * Processes a refund.
+	 *
+	 * @param \WC_Order  $wc_order The WooCommerce order.
+	 * @param float|null $amount The refund amount.
+	 * @param string     $reason The reason for the refund.
+	 *
+	 * @return bool
+	 */
+	public function process( \WC_Order $wc_order, float $amount = null, string $reason = '' ) : bool {
+		$order_id = $wc_order->get_meta( PayPalGateway::ORDER_ID_META_KEY );
+		if ( ! $order_id ) {
+			return false;
+		}
+		try {
+			$order = $this->order_endpoint->order( $order_id );
+			if ( ! $order ) {
+				return false;
+			}
+
+			$capture = $order->purchase_units()[0]->payments()->captures()[0];
+			$refund  = new Refund(
+				$capture,
+				$capture->invoice_id(),
+				$reason,
+				new Amount(
+					new Money( $amount, get_woocommerce_currency() )
+				)
+			);
+			return $this->payments_endpoint->refund( $refund );
+		} catch ( RuntimeException $error ) {
+			return false;
+		}
+	}
+}
diff --git a/tests/PHPUnit/ApiClient/Entity/PaymentsTest.php b/tests/PHPUnit/ApiClient/Entity/PaymentsTest.php
index a1062794d..adfa7798d 100644
--- a/tests/PHPUnit/ApiClient/Entity/PaymentsTest.php
+++ b/tests/PHPUnit/ApiClient/Entity/PaymentsTest.php
@@ -8,15 +8,24 @@ use WooCommerce\PayPalCommerce\ApiClient\TestCase;
 
 class PaymentsTest extends TestCase
 {
-    public function testAuthorizations()
-    {
-        $authorization = \Mockery::mock(Authorization::class);
-        $authorizations = [$authorization];
+	public function testAuthorizations()
+	{
+		$authorization = \Mockery::mock(Authorization::class);
+		$authorizations = [$authorization];
 
-        $testee = new Payments(...$authorizations);
+		$testee = new Payments($authorizations, []);
 
-        $this->assertEquals($authorizations, $testee->authorizations());
-    }
+		$this->assertEquals($authorizations, $testee->authorizations());
+	}
+	public function testCaptures()
+	{
+		$capture = \Mockery::mock(Capture::class);
+		$captures = [$capture];
+
+		$testee = new Payments([], $captures);
+
+		$this->assertEquals($captures, $testee->captures());
+	}
 
     public function testToArray()
     {
@@ -27,9 +36,17 @@ class PaymentsTest extends TestCase
                 'status' => 'CREATED',
             ]
         );
+	    $capture = \Mockery::mock(Capture::class);
+	    $capture->shouldReceive('to_array')->andReturn(
+		    [
+			    'id' => 'capture',
+			    'status' => 'CREATED',
+		    ]
+	    );
+	    $captures = [$capture];
         $authorizations = [$authorization];
 
-        $testee = new Payments(...$authorizations);
+        $testee = new Payments($authorizations, $captures);
 
         $this->assertEquals(
             [
@@ -39,6 +56,12 @@ class PaymentsTest extends TestCase
                         'status' => 'CREATED',
                     ],
                 ],
+	            'captures' => [
+		            [
+			            'id' => 'capture',
+			            'status' => 'CREATED',
+		            ],
+	            ],
             ],
             $testee->to_array()
         );
diff --git a/tests/PHPUnit/ApiClient/Factory/PaymentsFactoryTest.php b/tests/PHPUnit/ApiClient/Factory/PaymentsFactoryTest.php
index fe77baffc..639d940a4 100644
--- a/tests/PHPUnit/ApiClient/Factory/PaymentsFactoryTest.php
+++ b/tests/PHPUnit/ApiClient/Factory/PaymentsFactoryTest.php
@@ -5,6 +5,7 @@ declare(strict_types=1);
 namespace WooCommerce\PayPalCommerce\ApiClient\Factory;
 
 use WooCommerce\PayPalCommerce\ApiClient\Entity\Authorization;
+use Woocommerce\PayPalCommerce\ApiClient\Entity\Capture;
 use WooCommerce\PayPalCommerce\ApiClient\Entity\Payments;
 use WooCommerce\PayPalCommerce\ApiClient\TestCase;
 use Mockery;
@@ -13,27 +14,36 @@ class PaymentsFactoryTest extends TestCase
 {
     public function testFromPayPalResponse()
     {
-        $authorization = Mockery::mock(Authorization::class);
-        $authorization->shouldReceive('to_array')->andReturn(['id' => 'foo', 'status' => 'CREATED']);
+	    $authorization = Mockery::mock(Authorization::class);
+	    $authorization->shouldReceive('to_array')->andReturn(['id' => 'foo', 'status' => 'CREATED']);
+	    $capture = Mockery::mock(Capture::class);
+	    $capture->shouldReceive('to_array')->andReturn(['id' => 'capture', 'status' => 'CREATED']);
 
         $authorizationsFactory = Mockery::mock(AuthorizationFactory::class);
-        $authorizationsFactory->shouldReceive('from_paypal_response')->andReturn($authorization);
-
+	    $authorizationsFactory->shouldReceive('from_paypal_response')->andReturn($authorization);
+		$captureFactory = Mockery::mock(CaptureFactory::class);
+	    $captureFactory->shouldReceive('from_paypal_response')->andReturn($capture);
         $response = (object)[
-            'authorizations' => [
-                (object)['id' => 'foo', 'status' => 'CREATED'],
-            ],
+	        'authorizations' => [
+		        (object)['id' => 'foo', 'status' => 'CREATED'],
+	        ],
+	        'captures' => [
+		        (object)['id' => 'capture', 'status' => 'CREATED'],
+	        ],
         ];
 
-        $testee = new PaymentsFactory($authorizationsFactory);
+        $testee = new PaymentsFactory($authorizationsFactory, $captureFactory);
         $result = $testee->from_paypal_response($response);
 
         $this->assertInstanceOf(Payments::class, $result);
 
         $expectedToArray = [
-            'authorizations' => [
-                ['id' => 'foo', 'status' => 'CREATED'],
-            ],
+	        'authorizations' => [
+		        ['id' => 'foo', 'status' => 'CREATED'],
+	        ],
+	        'captures' => [
+		        ['id' => 'capture', 'status' => 'CREATED'],
+	        ],
         ];
         $this->assertEquals($expectedToArray, $result->to_array());
     }
diff --git a/tests/PHPUnit/WcGateway/Gateway/WcGatewayTest.php b/tests/PHPUnit/WcGateway/Gateway/WcGatewayTest.php
index 0780e6f15..102069ef7 100644
--- a/tests/PHPUnit/WcGateway/Gateway/WcGatewayTest.php
+++ b/tests/PHPUnit/WcGateway/Gateway/WcGatewayTest.php
@@ -5,11 +5,13 @@ namespace WooCommerce\PayPalCommerce\WcGateway\Gateway;
 
 
 use WooCommerce\PayPalCommerce\Onboarding\Render\OnboardingRenderer;
+use WooCommerce\PayPalCommerce\Onboarding\State;
 use WooCommerce\PayPalCommerce\Session\SessionHandler;
 use WooCommerce\PayPalCommerce\TestCase;
 use WooCommerce\PayPalCommerce\WcGateway\Notice\AuthorizeOrderActionNotice;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\AuthorizedPaymentsProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Processor\OrderProcessor;
+use WooCommerce\PayPalCommerce\WcGateway\Processor\RefundProcessor;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\Settings;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SettingsFields;
 use WooCommerce\PayPalCommerce\WcGateway\Settings\SettingsRenderer;
@@ -42,13 +44,19 @@ class WcGatewayTest extends TestCase
 	        ->shouldReceive('destroy_session_data');
         $settings
             ->shouldReceive('has')->andReturnFalse();
+        $refundProcessor = Mockery::mock(RefundProcessor::class);
+        $state = Mockery::mock(State::class);
+        $state
+	        ->shouldReceive('current_state')->andReturn(State::STATE_ONBOARDED);
         $testee = new PayPalGateway(
             $settingsRenderer,
             $orderProcessor,
             $authorizedPaymentsProcessor,
             $authorizedOrderActionNotice,
             $settings,
-            $sessionHandler
+            $sessionHandler,
+	        $refundProcessor,
+	        $state
         );
 
         expect('wc_get_order')
@@ -76,13 +84,19 @@ class WcGatewayTest extends TestCase
         $settings
             ->shouldReceive('has')->andReturnFalse();
         $sessionHandler = Mockery::mock(SessionHandler::class);
+	    $refundProcessor = Mockery::mock(RefundProcessor::class);
+	    $state = Mockery::mock(State::class);
+	    $state
+		    ->shouldReceive('current_state')->andReturn(State::STATE_ONBOARDED);
         $testee = new PayPalGateway(
             $settingsRenderer,
             $orderProcessor,
             $authorizedPaymentsProcessor,
             $authorizedOrderActionNotice,
             $settings,
-            $sessionHandler
+            $sessionHandler,
+	        $refundProcessor,
+	        $state
         );
 
         expect('wc_get_order')
@@ -116,13 +130,19 @@ class WcGatewayTest extends TestCase
         $settings
             ->shouldReceive('has')->andReturnFalse();
         $sessionHandler = Mockery::mock(SessionHandler::class);
+	    $refundProcessor = Mockery::mock(RefundProcessor::class);
+	    $state = Mockery::mock(State::class);
+	    $state
+		    ->shouldReceive('current_state')->andReturn(State::STATE_ONBOARDED);
         $testee = new PayPalGateway(
             $settingsRenderer,
             $orderProcessor,
             $authorizedPaymentsProcessor,
             $authorizedOrderActionNotice,
             $settings,
-            $sessionHandler
+            $sessionHandler,
+	        $refundProcessor,
+	        $state
         );
 
         expect('wc_get_order')
@@ -171,13 +191,19 @@ class WcGatewayTest extends TestCase
         $settings
             ->shouldReceive('has')->andReturnFalse();
         $sessionHandler = Mockery::mock(SessionHandler::class);
+	    $refundProcessor = Mockery::mock(RefundProcessor::class);
+	    $state = Mockery::mock(State::class);
+	    $state
+		    ->shouldReceive('current_state')->andReturn(State::STATE_ONBOARDED);
         $testee = new PayPalGateway(
             $settingsRenderer,
             $orderProcessor,
             $authorizedPaymentsProcessor,
             $authorizedOrderActionNotice,
             $settings,
-            $sessionHandler
+            $sessionHandler,
+	        $refundProcessor,
+	        $state
         );
 
         $this->assertTrue($testee->capture_authorized_payment($wcOrder));
@@ -218,13 +244,19 @@ class WcGatewayTest extends TestCase
         $settings
             ->shouldReceive('has')->andReturnFalse();
         $sessionHandler = Mockery::mock(SessionHandler::class);
+	    $refundProcessor = Mockery::mock(RefundProcessor::class);
+	    $state = Mockery::mock(State::class);
+	    $state
+		    ->shouldReceive('current_state')->andReturn(State::STATE_ONBOARDED);
         $testee = new PayPalGateway(
             $settingsRenderer,
             $orderProcessor,
             $authorizedPaymentsProcessor,
             $authorizedOrderActionNotice,
             $settings,
-            $sessionHandler
+            $sessionHandler,
+	        $refundProcessor,
+	        $state
         );
 
         $this->assertTrue($testee->capture_authorized_payment($wcOrder));
@@ -258,13 +290,19 @@ class WcGatewayTest extends TestCase
         $settings
             ->shouldReceive('has')->andReturnFalse();
         $sessionHandler = Mockery::mock(SessionHandler::class);
+	    $refundProcessor = Mockery::mock(RefundProcessor::class);
+	    $state = Mockery::mock(State::class);
+	    $state
+		    ->shouldReceive('current_state')->andReturn(State::STATE_ONBOARDED);
         $testee = new PayPalGateway(
             $settingsRenderer,
             $orderProcessor,
             $authorizedPaymentsProcessor,
             $authorizedOrderActionNotice,
             $settings,
-            $sessionHandler
+            $sessionHandler,
+	        $refundProcessor,
+	        $state
         );
 
         $this->assertFalse($testee->capture_authorized_payment($wcOrder));