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A friend sent me $38 recently, and on the paypal app it said it was received. However, it never showed up in my bank account even after over a week. I found out that the whole time my bank account had not been confirmed and connected to my paypal account, which was why paypal wasn't letting me refund it. So I promptly confirmed my bank account and was able to refund the money he sent me via paypal. However, today I discovered that the refund had been taken out of my bank account funds, which shouldn't have happened because the money my friend sent me never made it to my account in the first place. So I just lost $38. How can I get my money back?
If you added your bank account but didn't confirm it, you can withdraw to the bank account (unless they've changed this policy of late) but just can't use the bank account as a funding option. The request to transfer was marked complete, yes?
When you issued a refund and don't have funds in your PayPal balance, PayPal takes the funds from your bank account, which is what happened. You need to contact PayPal customer service so they can put a trace on the bank withdraw:
Click HELP at the top menu, scroll down to click CONTACT US, and then scroll down to click CALL US.
Call early, during business hours, west coast time to try to get a US rep. Say "Live Agent" to the automated recording.
Or private message via social media: