Could be one of 2 reasons. Depends on how you funded your original payment.
If it was from your bank account and you have back up cards on file with paypal it will go back to your bank account, if paid from a c.c. it will go back there.
If funded from your paypal balance or as an echeque then it will go back to your paypal balance.
However once the refund is made it takes about a week and sometimes more to go back to the funding source.
The second possibility is if the refund did show in your paypal balance and then you brought something using paypal then paypal would have taken the money from your balance and not your funding source.
Advice is voluntary.
Kudos / Solution appreciated.
