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!

[Peter_notsosure]

I have the same issue. I ordered online. Item was out of stock and the order was cancelled within minutes and merchant issued a refund. Still, the money was deducted from my checking account the next day and there is a hold on the refund. Paypal does not seem to be regulated the same way as banks. A bank would never get away with this. What is the regulatory agency that oversees Paypal? To make the matter worse, it does not say for how long the refund is being illegally held.

Long live credit cards.

[kernowlass]

did you bother to read the thread???

Temporary hold

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.

The funds leave your bank account from 2 hours to 3 days later HOWEVER as paypal use electronic transfer and it has to go via automated clearing it takes 5-7 days to get to paypal (the 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.

Paypal cannot refund money they have not got yet.

Read up about electronic transfer >>

http://www.ehow.com/info_8537474_difference-wire-t​ransfer-electronic-transfer.html

Speed •

Because processing electronic fund transfers involves a third party in the automated clearing house -- which processes the transactions overnight -- the time it takes to complete this type of transfer is generally between one and four business days.

Since one bank completes a wire transfer by dealing with another bank directly, wire transfers occur faster than electronic fund transfers. Often, banks complete wire transfers in real time, making funds available to a receiver within minutes or hours of a person beginning the transaction.

PAYPAl USES ELECTRONIC TRANSFERS.

[JustRobert]

Well what happened to me was that I bought something from eBay, we both decided to cancel the transaction and the seller issue a refund.   So yea I get that money has to clear in order to receive your refund.  But what happened to me was that my CC was suppose to be charged and not my bank account. My bank account got charged but I don't have funds to cover that transaction.  Now I have have a negitive amount charged by PayPal to my account for the item that was bought.  So my question once paypal notices that there is no money there does the charge disappear? 

[Hammygirl]

There are some really helpful explanations here. Unfortunately, none of them seem to fit for my experience. I purchased something, cancelled the order, got Full refund EIGHT days later. But then PayPal puts a hold on he money. I called and asked for an explanation and was told its under review. When I asked why the call handler just kept repeating herself and would not answer me. Eventually she told me that PayPal was having some security issues as some people had had their money compromised. I now have to wait for a further 5-7 working days to get MY money back. PayPal has a security breech, so they have kept my money. I'm really not convinced and I now no longer trust PayPal and will be closing my account.

[PayPal_paula]

Hi Hammygirl,

Welcome to the PayPal community forum. New members are always welcome.

I am sorry to hear that you were not given the information you needed about your refund. I must also say that the information you were given was incorrect. PayPal have not had a security breach and this is not why your refund would have been placed on hold.

When a payment is funded from your bank account, we pay your seller instantly on your behalf. We then go to your bank over the next day or two to request the funds. Once your bank receives this request they process it and release the funds. The funds are then processed through the banks clearing house and are then add to your PayPal account. This process takes 5-7 working days to fully complete. If you are refunded before this time, we place a hold on your refund until the funds from the initial transaction have completed. Once they have the temporary hold is lifted and your funds are added to your PayPal balance.

I do hope this helps explain a little better for you and again I do apologise for any mis-information you received.

Thanks for posting

Paula

[wellandman]

I sold my video camera at a great loss ebay fees 49,00 paypay 15 stung big time legal robbery

anyway sold at a total loss in a 1 day auction man paid isntantly even told me funds left his bank instantly

yes you guessed tempory hold

Camera sold to pay remander of holiday that was booked 5 days time

yep waste of time 3 weeks later got the refund

so

lost the holiday the deposit of the holiday

very very unhappy to say the least

why do these companies need to make billions where does all this money go ?????

now seeking legal aid as lost over 1300 cause of the greed of paypal

i would love to put all of paypays moneys on tempory hold see how they like it !!!!

[ngeorgievv]

Hello ,

Today I chek my paypal balancases and I see that I have one transaction with status Temporary Hold , a status of transaction is remouved ? What you mean this problem I don't have open case for me as a seller I had one request for return but I don't accept because I was writing excellent review for my item .

Thanks for your help !

[Sharkzz1]

Hi there,

On april the 21th i sent bought something for 67,50 euro. 

Ok good, next day it got refunded because of some problems, ok no problem.

3 days later it got withdrawn from my bank account. and till this day my paypal account is still 0 euros.

it's been 10 business days already but still no refund?

can someone from paypal help me please?

Thank you

[Raitis_S]

Still don't understand... On 05.05.2015 money gone from my bank account, on 07.05.2015 Refund - Completed. Today is 11.05.2015 and PayPal is still reviewing something... Simple question: when will I get my €471,61 EUR back to my bank account? Thanks

[PayPal_Rachael]

Hi Raitis_S ,

Welcome to the community forum. 

The length of time a refund is held depends on how long it takes to process from your bank. It's normally about 7 working days. I would, however, expect it to be in your PayPal account by today. 

If you made the payment originally with your bank account the money would go to your PayPal account balance. It won't automatically be sent back to your bank account but you can withdraw the money to you bank by clicking the withdrawal button in your wallet. The money is also available for you to spend from your account if you would rather do that.

I hope this helps. 

Rachael