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It can be frustrating, for sure, when all parties seem to blame each other. You said you received confirmation from PayPal that the refund did occur, right? Are you able to verify this by viewing the transaction details in your PayPal account for this payment? As long as that does correctly show the refund has been processed then the funds will turn up. It's all based on the banking systems, though, exactly how long it will take. Different card issuing banks take longer to acknowledge such things, and over the holiday it could have delayed things a little bit. I would give it a few more days and if it still hasn't shown up I would call PayPal, provide the transaction details, and let them know your card issuing bank is telling you that they see no record of the refund. My guess it will show up by Monday or Tuesday.
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This happened to me in August 2017. I was sending someone $400 and they declined the payment because I sent it in the way Paypal will take some $ for the transaction (not "friends and family"), anyways, they said they refunded the $ to my bank card, but my bank had no records of this transaction. I have been fighting with Paypal and my bank and Paypal won't resolve the issue with the bank directly. This is absolutely ridiculous and my attorney is about to get involved which is going to cost me a lot more than the $400, but at this point I don't care. I'm tired of Paypal scamming people for their hard earned money.
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