A buyer has 180 days from the date of purchase to request a refund - this policy is outlined in the User Agreement which you agree to when you opened your account. If a buyer requests a refund via PayPal's Resolution Center, you can either contact the buyer and arrange a refund or the buyer can elevate the dispute to a claim - at that point PayPal will review the claim and make a decision - should PayPal decide in the buyer's favor, they will refund the money. If you don't have sufficient funds available to cover the refund, PayPal will do the refund and your account may go into a negative balance. If this happens, you're account will be limited until you resolve the negative balance meaning you have pay back the funds to PayPal.
