Months after paying an invoice, a client disputed the charge. I emailed her, reminding her of our transaction (a photography session), and she sent me a check. It turns out there was fraudulent activity on her account and she disputed many charges, mine was one of them because she forgot she had made the payment and didn't recognize it when asked by the bank. Months after this, long after the check had cleared, PayPal resolved the dispute in my favor. So now I have the extra balance in my account.
Who gets the money back? I imagine that if PayPal ate the cost, it should go to them, but I can't figure out how to ask them through various help avenues. If the bank covered it as part of fraud protection, then it's none of my business and I should just refund her.
