If I refund an amount that is currently on hold with eBay will it come out of those held funds?

[Chayward1987]

Hey. I sold a bag and the buyer paid immediately on PayPal, PayPal have held it (over £100 and from Japan) I have cancelled the sale on eBay as the condition is not as good as I advertised so I want to refund straight away. If I refund it, will it come from the held money or do I have to use my own money to pay them back until the funds come out of hold?

[PayPal_Rich]

Hello Chayward1987,

Thank you for reaching out to the PayPal Community forum for assistance. 

Here is a link with more information on refunds and how they work: https://www.paypal.com/uk/webapps/mpp/send-refund. 

If you refund the payment and have the entire payment in your PayPal balance, including the fees charged when the payment was received, the held balance will be used along with the available balance to issue a refund.

If you do not have the entire amount of the payment in your PayPal balance, your linked financial may be charged to issue a refund instead.