refund money on hold.
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Disputes
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You can issue a refund but it would come from cleared funds in your paypal balance (not the held ones) or from your linked bank account.
Even if you could use the held funds there would not be enough as paypal no longer return the fee you were charged when the buyer paid as any refund you issue so you would need to add the fee amount.
If the buyer opened a dispute and you refused to refund then paypal would then use the held funds BUT you would then be in negative for the fee amount.
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Firstly if they paid using friends/family then the payment should not be on hold UNLESS its an echeque with a clearance date?
Secondly be careful, if you are accepting that type of payment for sending purchases you risk your account being limited.
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What limitations paypal put on your account is between you and them, you would need to ask.
I am just a user of this forum the same as you, only difference is that i have been here a long while and give advice based on what i know about paypal.
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