I am receiving refund from the seller but the card used to carry out the initial transaction is no longer valid. Should I unlink the card from my PayPal account? Will the money be refunded to another account?
If the card ACCOUNT that both cards belong or belonged to is still open then it should go through fine. However if its a completely new card / account then it may decline so ask your old card issuer if they can help you recover your refund. Failing that it may bounce back to your balance, allow 14 working days and if no show contact customer services for a trace.
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