Refund Payment Without PayPal Balance
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In the last 2-3 months, I have tried to refund 2 payments for eBay auctions. Both times, the refund was rejected because I don't have the funds in my PayPal balance.
Today, I called PayPal and the phone agent told me that this was a recent change in policy where you cannot send a refund without sufficient balance in your PayPal account. My checking account is linked to my PayPal account, so I used to be able to send refunds and the funds were taken from my linked bank account.
The Refund pages on PayPal.com indicate that you CAN refund money and have the funds taken from your linked bank account.
Which is correct - the phone agent or the Help pages on PayPal.com? Should I be able to send a refund without the balance in my PayPal account, using my linked bank account?
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Yes you should be able to refund from a linked bank account, make sure you list your bank account as your preferred funding source for the refund.
Advice is voluntary.
Kudos / Solution appreciated.
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@spudohio i'm having the same issue!! i had two users on ebay ask to return items in the last few months, and once they shipped their items back to me and i tried to issue refunds, it was denied due to a $0 balance! but my bank account is linked, as well as my debit card from that bank account. it's never been an issue in the past, so i'm confused. and you're right–on the help page, it says "If you don’t have a balance or money waiting to be accepted, the entire refund will be issued from the primary bank account linked to your PayPal account." so why all of a sudden can't we issue refunds without a balance? 😕
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