Refunds

[larrylwill]

It seems that Refunds are the main topic of problems at Paypal. 

It seems they can take the money at once from my bank but when you get a refund on the same funds they need to hold it. 

I bought an item from dealtree on ebay, paypal removed the funds from my bank soon as I payed, then dealtree said I had to reorder because paypal was **bleep**ed up shipping to another address, so they issued a refund, (paypal hold), I made the purchase again at once it was removed from my bank. Then dealtree charged me tax so I had to pay the tax, then they said the tax was too much so they refunded the difference. (again on hold). Then I bought another item from another vendor, my bank deducted the funds, then he sent me a note it was out of stock and issued a refund, again on hold. Now today I see a small part of the refunds was released. So far Im out $72.76 and only got back $9.86. If my bank takes the money at once and paypal puts holds on funds then somebody is making interest on all the money they are holding. $50 times 100,000 is a nice chunk of change.Nobody at paypal can tell me how long the refunds will be on hold or why only part was credited. They claim all refunds have to go through the federal bank. I think its bull.

How long does it typically take to get your refund? Both companies are large companies.

[PayPal_Kevin]

Hello larrylwill

Thank you for your questions and I am happy to help explain.  When a payment is made via your bank account, it is true that the funds will typically be removed within 24 hours, unless it is a holiday or weekend.  PayPal does not get the money at the same time you see the funds removed from your bank.

All electronic payments go through the Federal Reserve or Clearing House as it is also known as.  PayPal pays your seller out of our own money so they get paid right away and you get your item quicker, as we know we will not get our money for at least 3-4 business days.

When an Instant Transfer bank payment is refunded back to you, the seller is actually refunding our money that we fronted on behalf of you.  The hold you are seeing is only on there until we receive the funds from your bank which takes 3-4 business days.  If you are seeing some money credited back right away then it is most likely due to part of the payment being funded with money that was already in your PayPal balance as those are instant credits.

I hope this helps explain the process better but as always please let me know if you need any further help.  Have a great day.

KB