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I sold an item on eBay that was damaged in transit. The seller returned the item and was issued a refund by eBay. The buyer also initiated a chargeback through their credit card company. PayPal automatically opened a case to dispute the transaction. PayPal closed this case in favor of the buyer and in doing so withdrew funds from my PayPal account for the chargeback settlement. I spoke to PayPal and requested to open an appeal for the chargeback since I had been charge twice but he said that there was no functionality within PayPal's IT system to handle a case like this. I also contacted the buyer a few times and they confirmed that they 1. Received the refund from eBay to their credit card and 2. PayPal made another refund to what he described as a “guest account” but that the funds are still there and he has not received that refund. He only received one refund to his credit card and that was from eBay. In his words they are “sitting in limbo” with PayPal in the “guest account”. Who do I get PayPal to release those funds back to me. I have spoken to eBay and PayPal numerous times so not going there anymore. Should I send PayPal a Notice of Dispute to their litigation department?
I suggest opening a case with bbb.org under PayPal San Jose CA to get PayPal Office of Executive Escalations to review your case.