Missing refund

[claire_smiley]

I paid for an item recently using the ‘pay after delivery’ option. I got the item 2 weeks after I ordered it, and requested a refund from the seller (groupon) as it was faulty; they refunded almost immediately. However, in the day it took, the pay after delivery payment came out of my bank account but the refund processed as just cancelling the transaction, therefore I have no funds in my account. Does anyone have any idea what will happen next?! Will PayPal refund me the money that has left my bank account? Otherwise, I’m out of pocket and PayPal have just gained!

[kernowlass]

@claire_smiley 

If you funded the payment to the seller using bank transfer. What PayPal do here is credit the recipient on your behalf (so there is no delay in despatching your item). Then if you receive a refund in the meantime they are unable to issue this until the original bank transfer completes.

If you use PAD then if the refund is made a while before the payment leaves your bank account then it may just cancel it, otherwise you have to wait for it to clear through to paypal and then the refund is credited.

[claire_smiley]

Thank you, that’s helpful. Just panicked a bit as it says on my original transaction ‘ This scheduled payment was cancelled and you won't be charged for this transaction.’ but I already have been! Hopefully the money will reappear soon!