diff --git a/integration-tests/http/__tests__/payment/admin/payment.spec.ts b/integration-tests/http/__tests__/payment/admin/payment.spec.ts
index f672f6ec6ab97..13f473336e24e 100644
--- a/integration-tests/http/__tests__/payment/admin/payment.spec.ts
+++ b/integration-tests/http/__tests__/payment/admin/payment.spec.ts
@@ -170,6 +170,104 @@ medusaIntegrationTestRunner({
       )
     })
 
+    it("should issue multiple refunds", async () => {
+      await api.post(
+        `/admin/payments/${payment.id}/capture`,
+        undefined,
+        adminHeaders
+      )
+
+      const refundReason = (
+        await api.post(`/admin/refund-reasons`, { label: "test" }, adminHeaders)
+      ).data.refund_reason
+
+      await api.post(
+        `/admin/payments/${payment.id}/refund`,
+        {
+          amount: 250,
+          refund_reason_id: refundReason.id,
+          note: "Do not like it",
+        },
+        adminHeaders
+      )
+
+      await api.post(
+        `/admin/payments/${payment.id}/refund`,
+        {
+          amount: 250,
+          refund_reason_id: refundReason.id,
+          note: "Do not like it",
+        },
+        adminHeaders
+      )
+
+      const refundedPayment = (
+        await api.get(`/admin/payments/${payment.id}`, adminHeaders)
+      ).data.payment
+
+      expect(refundedPayment).toEqual(
+        expect.objectContaining({
+          id: payment.id,
+          currency_code: "usd",
+          amount: 1000,
+          captured_at: expect.any(String),
+          captures: [
+            expect.objectContaining({
+              amount: 1000,
+            }),
+          ],
+          refunds: [
+            expect.objectContaining({
+              amount: 250,
+              note: "Do not like it",
+            }),
+            expect.objectContaining({
+              amount: 250,
+              note: "Do not like it",
+            }),
+          ],
+        })
+      )
+    })
+
+    it("should throw if refund exceeds captured total", async () => {
+      await api.post(
+        `/admin/payments/${payment.id}/capture`,
+        undefined,
+        adminHeaders
+      )
+
+      const refundReason = (
+        await api.post(`/admin/refund-reasons`, { label: "test" }, adminHeaders)
+      ).data.refund_reason
+
+      await api.post(
+        `/admin/payments/${payment.id}/refund`,
+        {
+          amount: 250,
+          refund_reason_id: refundReason.id,
+          note: "Do not like it",
+        },
+        adminHeaders
+      )
+
+      const e = await api
+        .post(
+          `/admin/payments/${payment.id}/refund`,
+          {
+            amount: 1000,
+            refund_reason_id: refundReason.id,
+            note: "Do not like it",
+          },
+          adminHeaders
+        )
+        .catch((e) => e)
+
+      expect(e.response.data.message).toEqual(
+        "You cannot refund more than what is captured on the payment."
+      )
+    })
+
     it("should not update payment collection of other orders", async () => {
       await setupTaxStructure(container.resolve(ModuleRegistrationName.TAX))
       await seedStorefrontDefaults(container, "dkk")
diff --git a/packages/modules/payment/integration-tests/__tests__/services/payment-module/index.spec.ts b/packages/modules/payment/integration-tests/__tests__/services/payment-module/index.spec.ts
index 4e0989a136900..afc8e637448e4 100644
--- a/packages/modules/payment/integration-tests/__tests__/services/payment-module/index.spec.ts
+++ b/packages/modules/payment/integration-tests/__tests__/services/payment-module/index.spec.ts
@@ -685,6 +685,52 @@ moduleIntegrationTestRunner<IPaymentModuleService>({
             )
           })
 
+          it("should fully refund a payment through two refunds", async () => {
+            await service.capturePayment({
+              amount: 100,
+              payment_id: "pay-id-2",
+            })
+
+            const refundedPaymentOne = await service.refundPayment({
+              amount: 50,
+              payment_id: "pay-id-2",
+            })
+
+            const refundedPaymentTwo = await service.refundPayment({
+              amount: 50,
+              payment_id: "pay-id-2",
+            })
+
+            expect(refundedPaymentOne).toEqual(
+              expect.objectContaining({
+                id: "pay-id-2",
+                amount: 100,
+                refunds: [
+                  expect.objectContaining({
+                    created_by: null,
+                    amount: 50,
+                  }),
+                ],
+              })
+            )
+            expect(refundedPaymentTwo).toEqual(
+              expect.objectContaining({
+                id: "pay-id-2",
+                amount: 100,
+                refunds: [
+                  expect.objectContaining({
+                    created_by: null,
+                    amount: 50,
+                  }),
+                  expect.objectContaining({
+                    created_by: null,
+                    amount: 50,
+                  }),
+                ],
+              })
+            )
+          })
+
           it("should throw if refund is greater than captured amount", async () => {
             await service.capturePayment({
               amount: 50,
diff --git a/packages/modules/payment/src/services/payment-module.ts b/packages/modules/payment/src/services/payment-module.ts
index 35ef3ef68b60f..98f36cdcceb67 100644
--- a/packages/modules/payment/src/services/payment-module.ts
+++ b/packages/modules/payment/src/services/payment-module.ts
@@ -717,10 +717,25 @@ export default class PaymentModuleService
     data: CreateRefundDTO,
     @MedusaContext() sharedContext: Context = {}
   ): Promise<PaymentDTO> {
-    const payment = await this.refundPayment_(data, sharedContext)
+    const payment = await this.paymentService_.retrieve(
+      data.payment_id,
+      {
+        select: [
+          "id",
+          "data",
+          "provider_id",
+          "payment_collection_id",
+          "amount",
+          "raw_amount",
+        ],
+        relations: ["captures.raw_amount", "refunds.raw_amount"],
+      },
+      sharedContext
+    )
+    const refund = await this.refundPayment_(payment, data, sharedContext)
 
     try {
-      await this.refundPaymentFromProvider_(payment, sharedContext)
+      await this.refundPaymentFromProvider_(payment, refund, sharedContext)
     } catch (error) {
       await super.deleteRefunds(data.payment_id, sharedContext)
       throw error
@@ -740,25 +755,10 @@ export default class PaymentModuleService
 
   @InjectTransactionManager("baseRepository_")
   private async refundPayment_(
+    payment: Payment,
     data: CreateRefundDTO,
     @MedusaContext() sharedContext: Context = {}
-  ): Promise<Payment> {
-    const payment = await this.paymentService_.retrieve(
-      data.payment_id,
-      {
-        select: [
-          "id",
-          "data",
-          "provider_id",
-          "payment_collection_id",
-          "amount",
-          "raw_amount",
-        ],
-        relations: ["captures.raw_amount", "refunds.raw_amount"],
-      },
-      sharedContext
-    )
-
+  ): Promise<Refund> {
     if (!data.amount) {
       data.amount = payment.amount as BigNumberInput
     }
@@ -771,10 +771,7 @@ export default class PaymentModuleService
       return MathBN.add(refundedAmount, next.raw_amount)
     }, MathBN.convert(0))
 
-    const totalRefundedAmount = MathBN.add(
-      refundedAmount,
-      data.amount
-    )
+    const totalRefundedAmount = MathBN.add(refundedAmount, data.amount)
 
     if (MathBN.lt(capturedAmount, totalRefundedAmount)) {
       throw new MedusaError(
@@ -783,7 +780,7 @@ export default class PaymentModuleService
       )
     }
 
-    await this.refundService_.create(
+    const refund = await this.refundService_.create(
       {
         payment: data.payment_id,
         amount: data.amount,
@@ -794,12 +791,13 @@ export default class PaymentModuleService
       sharedContext
     )
 
-    return payment
+    return refund
   }
 
   @InjectManager("baseRepository_")
   private async refundPaymentFromProvider_(
     payment: Payment,
+    refund: Refund,
     @MedusaContext() sharedContext: Context = {}
   ) {
     const paymentData = await this.paymentProviderService_.refundPayment(
@@ -807,7 +805,7 @@ export default class PaymentModuleService
         data: payment.data!,
         provider_id: payment.provider_id,
       },
-      payment.raw_amount
+      refund.raw_amount
     )
 
     await this.paymentService_.update(