NSF Fee from a cancelled transaction

[screambledeggs]

 So I tried to send money to my brother. My brother got the notification and he said it was sent as an e-check. He told me to try again, so I resent the money and he canceled the first payment. 

So the first payment was canceled on his end, and it showed up as canceled on my end.

I assumed that a canceled transaction meant that my second payment would go through my bank, but nope. PayPal charged my bank twice.

I've contacted their support about getting a bank letter, and am currently waiting for a reply.

So... to my understanding, even if a transaction is canceled, the transaction will complete?

[kernowlass · Accepted solution]

@screambledeggs

When you send money to a person or seller it is never instant > paypal credit them for you and then start the process of uploading your funds to paypal from your funding source.

This is done so you get your item or they get their money more quickly.

So when you cancel that payment  those funds can't do a u-turn > they have to process through to paypal who will then as the transaction has been cancelled either return them to your funding source (if you paid with a debit or credit card), or credit your paypal balance (if it was funded from your balance or instant bank transfer), but that takes a few days and sometimes up to a week.