Paypal Refund Transaction Refused - paypal

Question

I making refund option with PayPal REST API on my site.
I make order with Paypal test account all taht works great, but when I try to refund i get "Transaction refused". I try refunding full amount, part amount, currency changes... nothing helped me. I also try with new orders and some older orders ( 2 days old) same.
Here what I run and what I get
curl -v https://api.sandbox.paypal.com/v1/payments/sale/*******/refund -H 'Content-Type:application/json' -H 'Authorization: Bearer ***********' -d '{"amount":{"total":"5.00","currency":"JPY"}}'
* About to connect() to api.sandbox.paypal.com port 443 (#0)
* Trying 173.0.82.78...
* Connected to api.sandbox.paypal.com (173.0.82.78) port 443 (#0)
* Initializing NSS with certpath: sql:/etc/pki/nssdb
* CAfile: /etc/pki/tls/certs/ca-bundle.crt
CApath: none
* NSS: client certificate not found (nickname not specified)
* SSL connection using SSL_RSA_WITH_3DES_EDE_CBC_SHA
* Server certificate:
* subject: CN=api.sandbox.paypal.com,OU=PayPal Production,O="PayPal, Inc.",L=San Jose,ST=California,C=US
* start date: Dec 06 00:00:00 2012 GMT
* expire date: Dec 06 23:59:59 2016 GMT
* common name: api.sandbox.paypal.com
* issuer: CN=VeriSign Class 3 Secure Server CA - G3,OU=Terms of use at https:// www.verisign.com/rpa (c)10,OU=VeriSign Trust Network,O="VeriSign, Inc.",C=US
> POST /v1/payments/sale/**********/refund HTTP/1.1
> User-Agent: curl/7.29.0
> Host: api.sandbox.paypal.com
> Accept: */*
> Content-Type:application/json
> Authorization: Bearer ******************
> Content-Length: 44
>
* upload completely sent off: 44 out of 44 bytes
< HTTP/1.1 400 Bad Request
< Server: Apache-Coyote/1.1
< Date: Sun, 25 Aug 2013 21:35:55 GMT
< Connection: close
< PayPal-Debug-Id: 6ccd19f66d117
< Content-Type: application/json
< Content-Length: 171
< Connection: close
<
* Closing connection 0
{"name":"TRANSACTION_REFUSED","message":"{0}","information_link":"https://developer.paypal.com/webapps/developer/docs/api/#TRANSACTION_REFUSED","debug_id":"6ccd19f66d117"}
So what can be problem? I check link about that PayPal give me and he didnt help me at all.
I need to make refund option working ASAP.

Answer 1

The original transactions were run in Japanese Yen (JPY), but you don't have a JPY balance in your PayPal account -- hence, all of the transactions you've run in JPY are sitting in 'unclaimed' status. Log in to the seller's account (https://www.sandbox.paypal.com) and go to Profile->My Money. Under More (next to PayPal balance), click Currencies. Then, under the Select new currency drop-down, choose Japanese Yen and click Add Currency. The transactions you've previously taken should begin funneling into the account within a few minutes, after which you should be able to process your refund.