Refund by echeque
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Hello Annette99! Thank you for your post and welcome to the PayPal UK Community! I am sorry to hear that this has happened. If you have been informed about a refund, I recommend accessing your account on your home PC/laptop. If you were reviewing your account activity on the mobile app, this might not display all the transactions in detail. I also recommend taking a look here to make sure that the communication was genuinely from PayPal https://goo.gl/FW8YG1. If you are unable to locate the transaction/refund after this, please contact us by phone for additional assistance. You can also find us on Twitter @PayPal and/or our Facebook page. Hope this helps. - Carlos
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If you funded the original paypal payment to the seller with a debit or credit card then it won't go back to your paypal balance.
Once marked as completed it will automatically go back to your bank account or credit card but takes up to a week to process through to the bank and a bit longer for a c.c (paypal say allow 30 days but I have never waited longer than a week for mine).
Advice is voluntary.
Kudos / Solution appreciated.

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