withheld refund.

[whazz]

I have been refunded money from a purchase made originally from my bank account. Paypal are temporarily holding it for some reason, i dont understand why, as i have always used this process, most annoying!! can anyone explain why? it is my money after all.

[kernowlass]

Paypal refund you when they have that money to refund you with.

There are 2 reasons dependent on when you were refunded, so I am guessing this one, but if you state you were refunded a long while after you paid then I can give you the second scenario of why it is held >>>>>>

The temp hold 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.

[whazz]

Thanks for the reply, I will wait a few days to see if this rights itself.

[nitinat]

How many days you were waiting to get refunds back? I'm facing the same issue

[sharonwoolfende]

Paypal are keeping my money as they say it takes 5-7 days to refund money??? why then does it only take seconds to take the money from my bank??? This must be Illegal and some kind of fraud surely. If I owed them money I am sure I would have some sort of "Interset" charge etc. Total Rip Off. Going to report them to the Obudsman. They are using the money to finance other things so should pay me Interest on my money Yes??? Customer services say no one has the money?? I havent gotit. Seller hasnt got it. SO WHERE IS IT ?????

[kernowlass]

@sharonwoolfende

Paypal are keeping my money as they say it takes 5-7 days to refund money??? why then does it only take seconds to take the money from my bank??? T

Because paypal use electronic and not wire transfer. When you PAY it is never instant, paypal CREDIT the seller for you and then paypal take the wait of 5-7 days for the funds to transfer via automated clearing from your bank to paypal.

But with a refund you take the wait for the funds to clear from the sellers bank account to paypal > you.

That is why we have buyers confused on here that their item is on the way but the payment has not left their bank account yet.

[KenBell]

Happening to me now. eBay Bait and Switch scammer sold me item. Then after funds taken from my bank and I receive a tracking # from shipper, eBay Seller emails that Item not available, so he sent something else(cheaper, and wrong specs). (Seller has multiple eBay accounts and does this regularly, likely dropship) 1.) I contact seller, no reply 2.) I contact eBay then PayPal 3.) They both contact seller, then I get refund. PayPal has kept my money for a week In meantime I purchase a similar item from a different seller. Turned out to be THE SAME GUY! Sent an identical email with the same signature through eBay's message system. I demanded immediate refund, but after days of no reply, PayPal and eBay encouraged him to refund. So now, there are 2 refunds adding up to 900usd of MY MONEY sitting in PayPals fat bank accounts!!!