Refunding client in CAD with USD balance

[MzansiUser]

I am in South Africa. I need to refund a client urgently. I have a sufficient Paypal balance in USD. But when I refund the client in CAD. I get the error message "Your balance is not sufficient for the refund. Please try again when you have linked your bank account". Doesnt Paypal first deduct from balance before deducting from bank accounts?

[kernowlass · Accepted solution]

@MzansiUser 

If you are using funds in your paypal account ''balance'' then they have to be in the correct currency, paypal only converts for you if you are sending a refund from a bank account.