Awaiting Refund for Days - On Temporary Hold

[mrshendo]

Hi,

I bought an item from Ebay using bank transfer via Paypal, the item was unsuitable so I returned it the same day I received it.

The following day the vendor issued a refund which I have not yet received in my account - this was 6 days ago. The whole process was fast, until the refund point, it's a major frustration and where the system clearly falls down.

The transaction in Paypal says Temporary Hold and they are reviewing the transaction.

I wonder what does this mean and when will i receive the funds back in my bank account? I urgently need this money back!!

[kernowlass]

This arises because your seller has refunded you before your initial payment to them has cleared from your bank to PayPal.

When you sent your payment, the money is not instantly transferred from your bank account to the recipient’s PayPal account. Instead paypal instantly credit the recipient's PayPal account on your behalf and simultaneously request the same amount from your bank account to reimburse themselves.

It takes 5-7 business days for the money to arrive from your bank to PayPal (same timeframe and method as an eCheque in fact). If your Instant Bank Transfer is refunded, this refund cannot be completed until paypal receive the money from your bank to cover the original payment paypal made.

A ‘Temporary Hold’ is ‘Placed’ on your refund while your bank processes your initial transfer request. When paypal receive the money from your bank, it will be credited to your PayPal balance.