Temporary Hold on Refund

[fruit_fling]

I paid for something through paypal (not on ebay) but then almost immediately cancelled as I found a problem with my order. I made and cancelled the order on 17/09, got my refund back on 20/09 but it a temporary hold has been placed on it. I understand that this has something to do with the payment actually being taken from my bank account. However, the payment has now cleared from my bank account, but my refund is still being held. Does anyone know how long it will take for my refund to be released? Thanks!

[JAN4101]

I'm in the same position.

I made a payment which the seller refunded by mistake.  The payment came out of my bank account on the 27th.  The refund showed as completed on paypal on the 28th.

I repaid the seller after confirming that the payment was showing in my paypal account.  almost as soon as I made the second payment the refund was put on hold.  

Consequently the payment was debited from my bank account twice.

[jf83]

I do see where they're coming from. The payment / reversal does only take a second to clear within your country however that's not where PayPal keep their accounts. I'll leave it at that.

[Spike64]

I'm going through this temporary hold right now and frankly, it **bleep**...I guess that they can do this for the reasons I've read. I dont have to like it I suppose...but since I dont like it, I'll likely think long and hard before using Paypal for future transactions. They have their policy....but I also I have mine....enough said....

[sonorlite]

Same issue with me. I bought and then had the seller immediately cancel the transasction. Paypal went ahead anyway and took the funds from my bank account. I have had a temporary hold on the refund now for 6 working days.

[kernowlass]

This arises because your seller has refunded you before your initial payment to them has cleared from your bank to PayPal. The funds can't just do a u-turn and go back to your bank account.

When you sent your payment, the money is not instantly transferred from your bank account to the recipient’s PayPal account. Instead paypal instantly credit the recipient's PayPal account on your behalf and simultaneously request the same amount from your bank account to reimburse themselves.

It takes 5-7 business days for the money to arrive from your bank to PayPal (same timeframe and method as an eCheque in fact). If your Instant Bank Transfer is refunded, this refund cannot be completed until paypal receive the money from your bank to cover the original payment paypal made.

A ‘Temporary Hold’ is ‘Placed’ on your refund while your bank processes your initial transfer request. When paypal receive the money from your bank, it will be credited to your PayPal balance.

[wearecity]

In some cases, it is the process that Paypal uses that doesn't help, them or the customer.

As I said on another thread, some of these issues could be sorted out, if Paypal did not do anything until the person receiving the money, clicks to accept. That way if someone makes a mistake with the payment details, or the retailer, doesn't have stock, then it can be cancelled by the buyer or seller and no further action needed.

In short, I still don't see why, Paypal sends any money and therefore requests money from the buyers account, straightaway. It means even a cancellation 10 secs afterwards means waiting 7 - 10 days minimum before the money is back in someone account.

That's what I would like an answer to, why does Paypal do it that way, surely they would get less frustrated people on here complaining, if they waitied until the person receiving the money clicks accept, then send the money and request from the buyers account.

[Kerri_C]

I've got a temporary hold on a refund, it was refunded on 11th immediately by the company due to a promotional code used to buy item not being valid. I therefore re-ordered at correct price, both amounts have come out of my account a few days now and 1wk before christmas i really need it back! I would never have re-ordered if i had known it would take so long for paypal to give me it back

[kernowlass]

This arises because your seller has refunded you before your initial payment to them has cleared from your bank to PayPal.

When you sent your payment, the money is not instantly transferred from your bank account to the recipient’s PayPal account. Instead paypal instantly credit the recipient's PayPal account on your behalf and simultaneously request the same amount from your bank account to reimburse themselves.

It takes 5-7 business days for the money to arrive from your bank to PayPal (same timeframe and method as an eCheque in fact). If your Instant Bank Transfer is refunded, this refund cannot be completed until paypal receive the money from your bank to cover the original payment paypal made.


A ‘Temporary Hold’ is ‘Placed’ on your refund while your bank processes your initial transfer request. When paypal receive the money from your bank, it will be credited to your PayPal balance.

[Thezonehome]

Here's a scenario for you. I sent a payment via friends and family transfer via my bank account.(No PayPal protection) The person that received the money refunded the transaction within the hour, and the refund instantly went into "pending" status. To make a long story short, the recipient and I had a little falling-out. My question: Is the recipient of the money able to withdraw and spend the funds and cancel the refund process while it's pending? So bottom line, is there any way possible that the refund would be stopped? Cheers!

[waypastthis]

OK 11 pages of complaints - PayPal - it is time to stop laundering money at the expence of people who need a trustworthy method of internet purchasing/payments.

The "slearing house" is clearing out our pockets at the expense of our acquiring our money after a cancelled or refunded payment - IN A REASONABLE TIME!!!.

We all know there is absolutely no need for the delay beyond PayPal using it to earn some extra money.

Be honest with yourselves PayPal - your slush fund is big enough - get out of the "temporary holding pattern" and get our money back to us!