funds frozen in dispute

[shanghaifish]

Hi

Recently, I wanted to made a payment to someone (payee #1) who has a Paypal account.  But I made an error in the addresses and entered someone else’s address (payee #2).

I realized my error shortly thereafter, but because Payee #2 has a Paypal account, she does not need to Accept the Funds; they are automatically transferred from my Paypal account to hers.  From my end, the transaction status is “complete”.

Because I was not sure of how fast the transfer actually happens, I initiated a Dispute, in the hopes of stopping the funds from reaching her account.  I figured it would be simpler to reverse this if the funds were still in the system.  The Dispute was actually initiated before she had realized a payment was incoming (she doesn’t check her email every day).

Since that time, I was able to reach Payee #2 : she is understanding and nice about it, and willing to refund the money.  However, she says she cannot, because when she opens the details of that transaction, it shows “The funds are not available while this transaction is being reviewed.”

From the screenshot she sent, it shows that the Original Transaction is “Held”, and the Related Transaction is “Placed” (I assume the Related Transaction refers to the dispute I initiated).

So, to resume :

- recently made a transfer to a wrong email address, (someone else I know)

- that person has a Paypal account

- payment shows "complete" at my end

- immediately initiated a Dispute

- contacted the wrong payee : she is nice and willing to grant a refund

- but from her end, Transaction Details show "The funds are not available while this transaction is being reviewed"

- so she cannot Grant a Full Refund

So she wants to Grant a Full Refund, but says she cannot because the funds are not available, apparently frozen while the Dispute is open.

What are my options here?

1. Is there a way to completely cancel this, from my end or the Payee’s end?

2. If I close the Dispute, I assume the funds would be released and allowed to be accessed by the Payee.  Could she at that time Grant a Full Refund?  And If so, would the service charges be refunded as well?

3. What happens if I escalate the Dispute?

4. What happens after 30 days?

Can someone please advise?

Thanks

Fish

[minty1]

Hi shanghaifish

The recipient  can contact ppal directly and asks them to release the funds so they can refund you. 

If they call(probably quicker) tell them not to select any options just hold on until they speak to someone

Do not close the dispute as you may not receive the refund

[shanghaifish]

Hi Minty1

Thanks for your reply.

There are problems with your suggestion :

- the recipient is in the Philippines

- the recipient probably wouldn't actually contact Paypal (assuming there's a way to do that from the Philippines)

- this situation is my fault, and I'm trying to sort it out without asking people to contact Paypal.

I'm confident that I can trust the recipient to return the money.  The only thing I'm concerned about are the service fees.  Once the dispute is closed, will there be a "Grant Full Refund" options for the transaction?

And if so, will the service fees be refunded as well?

Cheers

[joz]

For the full refund, PayPal will keep 30 cents as processing fee.

Here is the official doc - https://www.paypal.com/cgi-bin/webscr?cmd=xpt/Marketing/bizui/SendRefund-outside

[shanghaifish]

Hey Joe

Thanks for that.  But the official doc doesn't mention anything about refunding the service charges. 

I posted the same question on other forums, and the general conscensus is "service fees refunded? Hah in your dreams - nope"

Does anyone know the answer for sure?

Cheers