Paypal Invoice Paid but Client's transaction states failed.

[Krazoa]

Hi, I'm having a very weird issue with Paypal.

I sent an invoice to my client so that they could pay me for a product I made. The payment came through on my side so I accepted it and took the money out of Paypal. My client's Paypal shows them that the transfer of payment has failed. How is that possible when the money successfully came into my account and allowed me to withdraw it into my bank? 

Ever since the payment transaction 'failed' her side (despite it not failing on my side). Paypal has been taking money out of my client's account. I haven't received any of the extra money from her when it's done that, but I do not understand what is going on. 

The invoice is and has been paid on my side.

Paypal is counting the transaction as failed on her side.

If anyone can let me know what's going on or has a solution. Please let me know. This whole situation has put me off wanting to use Paypal because I never want my clients to go through this trouble.

[sharpiemarker]

@Krazoa 

Maybe her bank account is insufficient, is that what client mean by “failed”?

The reason, you got the money is because PayPal paid ahead to you immediately for client and waits for the bank payment to clear. If a bank payment comes back unpaid (failed), then PayPal will make multiple attempts on her bank account to get paid back from paying ahead to you out of pocket. So to resolve this, your client has to add money to her bank account so PayPal can get paid and stop making multiple attempts on her bank account.

[Krazoa]

@sharpiemarker 

My client has more than enough funds in their bank to cover the cost. I could charge them 3 times and they'd still have the funds.

The screenshot they've sent to me shows that payment was sent to me but then 8 days later it states "Failed transfer from Paypal".

The fact they have more than enough in their bank is what puzzles me more. Paypal has taken funds off of them 3 times now.

[sharpiemarker · Accepted solution]

@Krazoa 

I see, then client has to contact PayPal to resolve whatever happened. You got paid one payment so you can deliver client’s order. Not much else you can do.

[Krazoa]

@sharpiemarker 

Thank you, it was a digital order and there's nothing on the invoice that tells me I have to mark it as delivered. It's definitely been paid though and I have sent them the product. 

In the meantime I've moved the invoice to archived in hopes that it will solve the issue.

My client has been trying to get in touch with paypal but hasn't had much luck yet.