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I sent money $100 to an unverified account. The payment got on hold. The receiver is now saying that he ain't getting the refund option. He is saying that the refund option will only be there if he has $100 or higher amount of money in his account. Is that right?
Sounds like a scam, I certainly would not send anymore.
Any pending status on his account is his problem and not yours.
If he does not send the item then open a dispute for non receipt of item and go from there.
What option did you choose when you opened a dispute?
How did you pay, what option did you use?
How did you fund that paypal payment?