Double the refund? How are refunds processed?

[NCMom]

Hi - I need some help understanding how refunds are handled.

I sold an item on eBay, and a few days after the buyer received it, they said it wasn't working as described. I actually doubt this, as it was working perfectly when shipped, but I decided to not fight it, and offered to issue a refund if they shipped back the item. They opened a return request, which I accepted. The return request didn't say anything about the item not working, but that they had changed their mind, and it was the wrong color. (?) Anyway -

In ebay's email, it said the funds wouldn't be available until the return is closed. I had already taken the funds out of my paypal account, so my balance is negative there now. I was concerned if I took care of the negative balance with my credit card, that I would get charged again for the refund, and called PayPal customer service to see exactly how this would work. Would it be as if the buyer had never paid me, and I wouldn't actually need to issue a refund?

The PayPal CSR said I should take care of the negative balance, and a refund would be issued automatically when I received the item. THEN, when the claim was resolved in my favor, I'd be issued a credit for the full amount.

1) It's not a claim or dispute, so how can anything be decided "in my favor"? Did she mean when the case was closed?

2) I'll be out $100+ (amount of sale) until the case is closed? Is that how it works - I essentially refund the money twice, then get credited? If that's the case, how long does that typically take? That seems like a very odd way of handling a refund, and certainly doesn't make me want to sell on ebay again. I happen to have the amount needed now if that's the case, but what if I didn't have that "extra" $100?

I'm a little baffled.

Anyone with some experience with this? Or someone from PayPal who can explain?

Thanks!

[sharpiemarker]

Since you took the money out, that puts you in the neg as PayPal or eBay deducts the money for refund and put on hold for the buyer return, you need to put the money you took out back in to zero the PP account out.  Then when you get the return back, the money that PP/eBay is holding will be released to the buyer.

[sharpiemarker]

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@NCMom wrote:

1) It's not a claim or dispute, so how can anything be decided "in my favor"? Did she mean when the case was closed?

2) I'll be out $100+ (amount of sale) until the case is closed? Is that how it works - I essentially refund the money twice, then get credited? If that's the case, how long does that typically take? That seems like a very odd way of handling a refund, and certainly doesn't make me want to sell on ebay again. I happen to have the amount needed now if that's the case, but what if I didn't have that "extra" $100?

I'm a little baffled.

Anyone with some experience with this? Or someone from PayPal who can explain?

Thanks!

---

Then there is an issue with your story.  What put your account at neg balance?  If it was simply a return request, your account would still be at zero and you issue a refund when you get the item back if eBay or PayPal does not pull the money out from your account and put on hold like they do for disputes.  In your case, eBay or PayPal must've pulled the money out for the hold which put your PP acct in the neg.  Check if there is a dispute opened besides the return request.

[NCMom]

There is no dispute opened, with either PayPal or eBay.

[lancelotme]

Since the buyer requested a return on Ebay,you should speak to Ebay,not Paypal .

Paypal staff may just assume,since you call them,there must be a case of dispute open against you ,thats why they said something like if it is ruled in your favor,bla bla bla.

But buyer often request return on Ebay due to buyer remorse,so the money may be withheld,but it is not counted against you as if it were a dispute ,as soon as you receive the return,you have a few days to refund her,or Ebay would do it for you or rather Ebay robot will roam the site looking for cases ripe for refund.

The money is already withheld by Ebay.putting your Paypal balance in negative,you need to put some money back to bring it into zero or positive balance. 

Unless the buyer changes her mind and decide to keep the item,then after x number of days,Ebay will release  the fund and it will be returned to your paypal account.

(actually the money has never left your Paypal account,it is just being withheld so you cant do anything with it).

If you are a seller,you may be able to  fill the hole with new sales proceeds,   

[NCMom]

"But buyer often request return on Ebay due to buyer remorse,so the money may be withheld,but it is not counted against you as if it were a dispute ,as soon as you receive the return,you have a few days to refund her,or Ebay would do it for you or rather Ebay robot will roam the site looking for cases ripe for refund. The money is already withheld by Ebay.putting your Paypal balance in negative,you need to put some money back to bring it into zero or positive balance." Sorry for being dense - they are withholding the money, but then they issue a refund? So they use the money that's being held? The PayPal rep made it sound like they'd issue a refund separately from the held money, then I'd get it credited back at some point. So she was misunderstanding?

[USofAllOfUsA]

It's not you. It seems like a combination of ebay and paypal's sloppy reconciliation of refunds. The same thing is happening with my account. A refund was issued which pulled the funds back out (and paypal puts them on hold). My son transfered money into the account when he saw it was negative which brought it up to zero (original funds pulled should still be on hold). When ebay issued the refund, instead of the held funds being used they charged my paypal again as a "pre-approved charge". This charge came out of my linked bank account. Now I have been charged twice for a refund along with an overdraft from the second!

[DanTrader]

This same "refund" situation has my bank account overdrawn, my paypal account in negative credit and an unhappy customer who does not have their refund despite Paypal showing the refund processed as complete, and my customer has not recieved any refund yet... As a consequence of ebay policy yet again punishing the seller over buyer protection management, undoubtedly I am going to withdraw all my stock from ebay, all over a simple £95 refund escalating into a three headed monster of a refund. Amazon does not ripoff customers or sellers, ebay is crooked beyond repair, it used to be so good, now it's dreadful for the customer and even more unpleasant for the sellers who end up paying the customer for the privelage of a sale. Seriously Amazon is less bias, ebay has been doing this for years from what I've read so far, and ebay is showing it's true colours as a hive of thieves and that stereotype will always ultimately be ebay's downfall. Pity.

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@NCMom wrote:

Hi - I need some help understanding how refunds are handled.

I sold an item on eBay, and a few days after the buyer received it, they said it wasn't working as described. I actually doubt this, as it was working perfectly when shipped, but I decided to not fight it, and offered to issue a refund if they shipped back the item. They opened a return request, which I accepted. The return request didn't say anything about the item not working, but that they had changed their mind, and it was the wrong color. (?) Anyway -

In ebay's email, it said the funds wouldn't be available until the return is closed. I had already taken the funds out of my paypal account, so my balance is negative there now. I was concerned if I took care of the negative balance with my credit card, that I would get charged again for the refund, and called PayPal customer service to see exactly how this would work. Would it be as if the buyer had never paid me, and I wouldn't actually need to issue a refund?

The PayPal CSR said I should take care of the negative balance, and a refund would be issued automatically when I received the item. THEN, when the claim was resolved in my favor, I'd be issued a credit for the full amount.

1) It's not a claim or dispute, so how can anything be decided "in my favor"? Did she mean when the case was closed?

2) I'll be out $100+ (amount of sale) until the case is closed? Is that how it works - I essentially refund the money twice, then get credited? If that's the case, how long does that typically take? That seems like a very odd way of handling a refund, and certainly doesn't make me want to sell on ebay again. I happen to have the amount needed now if that's the case, but what if I didn't have that "extra" $100?

I'm a little baffled.

Anyone with some experience with this? Or someone from PayPal who can explain?

Thanks!

---

[Whac-A-Mole]

when your buyer asked for return or file a dispute with Ebay or Paypal,Paypal would immediately withhold the payment from your account/

if you have no fund for them to withhold,then it becomes a negative balance and Paypal would expect you to bring the balance to neutral by transferring fund from your bank account or ifyou continue to sell,any new payments coming in would be apply towards your negative balance/.

if you win the dispute or buyer decides not to return the item,then the payment would be released  account,you can confirm what I said by clicking on detail of the transaction,it is still in your account,it is just being withheld. 

[Whac-A-Mole]

if your customer paid with a credit card,then the refund would go back to his credit card,he should check his cc statement ,it could take 3-7 days,up to 30 days.