Welcome to the boards!
How was the transaction originally funded - by bank, balance or card? What is the status of the payment?
If it was funded by your bank or balance, the refund would go back into your PayPal account balance. If you've sent payments since then, you may have depleted the balance to fund new payments. To check this, go to History and select the All Activity with Balance option.
If you paid by card, refunds back to cards are sent to the card company immediately and directly. However, they can choose to take up to 30 days to credit your balance with them - it's up to them when they do it, even though PayPal has already given them the funds. Most card issuers are decent about it, though, so you might want to give them a quick call about the refund too.
Hope this helps,
Adrian
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