diff --git a/commerce_coordinator/apps/commercetools/clients.py b/commerce_coordinator/apps/commercetools/clients.py
index 786fc143..99e96b5c 100644
--- a/commerce_coordinator/apps/commercetools/clients.py
+++ b/commerce_coordinator/apps/commercetools/clients.py
@@ -531,7 +531,7 @@ def create_return_payment_transaction(
         try:
             logger.info(
                 f"[CommercetoolsAPIClient] - Creating refund transaction for payment with ID {payment_id} "
-                f"following successful refund {refund['id']} in PSP: {psp}"
+                f"following successful refund {refund.get('id')} in PSP: {psp}"
             )
             refund = self._preprocess_refund_object(refund, psp)
 
diff --git a/commerce_coordinator/apps/paypal/clients.py b/commerce_coordinator/apps/paypal/clients.py
index 1ef2bc99..6db9daa5 100644
--- a/commerce_coordinator/apps/paypal/clients.py
+++ b/commerce_coordinator/apps/paypal/clients.py
@@ -6,6 +6,7 @@
 from paypalserversdk.controllers.payments_controller import PaymentsController
 from paypalserversdk.http.auth.o_auth_2 import ClientCredentialsAuthCredentials
 from paypalserversdk.paypalserversdk_client import PaypalserversdkClient
+from paypalserversdk.configuration import Environment
 
 
 class PayPalClient:
@@ -18,6 +19,9 @@ def __init__(self):
                 o_auth_client_id=settings.PAYMENT_PROCESSOR_CONFIG['edx']['paypal']['client_id'],
                 o_auth_client_secret=settings.PAYMENT_PROCESSOR_CONFIG['edx']['paypal']['client_secret'],
             ),
+            environment=(Environment.SANDBOX
+                            if settings.PAYMENT_PROCESSOR_CONFIG['edx']['paypal']['env'] == 'sandbox'
+                            else Environment.PRODUCTION),
         )
 
     def refund_order(self, capture_id):
diff --git a/commerce_coordinator/apps/paypal/pipeline.py b/commerce_coordinator/apps/paypal/pipeline.py
index 955bd4c6..5cb85385 100644
--- a/commerce_coordinator/apps/paypal/pipeline.py
+++ b/commerce_coordinator/apps/paypal/pipeline.py
@@ -60,6 +60,8 @@ def run_filter(
         tag = type(self).__name__
 
         if psp != EDX_PAYPAL_PAYMENT_INTERFACE_NAME or not amount_in_cents or not ct_transaction_interaction_id:
+            logger.info(f'[{tag}] capture_id or amount_in_cents not set, '
+                        f'skipping refund for order: {order_id} with psp: {psp}')
             return PipelineCommand.CONTINUE.value
 
         if has_been_refunded:
diff --git a/commerce_coordinator/settings/base.py b/commerce_coordinator/settings/base.py
index 3d183c00..792c1708 100644
--- a/commerce_coordinator/settings/base.py
+++ b/commerce_coordinator/settings/base.py
@@ -441,6 +441,7 @@ def root(*path_fragments):
             'paypal_webhook_id': PAYPAL_WEBHOOK_ID,
             'client_id': '',
             'client_secret': '',
+            'env': 'sandbox',
         },
     },
 }