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PayPal stole money from my bank HELP!!!


PayPal stole money from my bank HELP!!!

I sold an item the buyer sent me $$$ so PayPal put the money on temporary hold until the item is delivered. I ended up getting surgery so I let the buyer know that I would be able to ship the item until I’m healed so I refunded the $$$ The buyer sent me Since it was still on temporary hold 2 days later I get an email saying “ Your bank declined your electronic funds transfer” . I called paypal about this and asking why are you taking money out my bank for a transaction that was on hold in the first place. I’m so **bleep** off, usually if the payment is on temporary hold and you refund the payment back to the buyer, the money that is on hold would go back to the buyer. So where did that money go like it doesn’t make sense to get it from my bank when the money was never released to me.
Esteemed Advisor

Re: PayPal stole money from my bank HELP!!!



The held funds are unavailable until PayPal releases it so if you issued a refund, it will come from your PayPal balance or your bank account if your PayPal balance is barren. Then after 21 days the held funds will be released to you. 


Once a refund is issued, I don't believe the buyer can file a dispute for the held funds because they can't double dip.


I sometimes wonder if one asked the buyer to open a dispute, would PayPal use the held funds to refund the buyer with or it is still unavailable and they still take the funds from your PayPal balance/bank account. One would read different things happening in situations like these and there's no help documentation explaining these situations.

Kudos & Solved are greatly appreciated. 🙂