Transaction limit exceeded; how to get a refund?

[Saffron_Blaze]

I placed an order with an online merchant. They sent me a paypal invoice and I paid it through paypal using my credit card. The seller immediately contacted me and said the funds did not come though because they had exceeded their monthly transaction limit. They recommended I speak with paypal to receive the money back. I did not get a refund from the seller and nothing has shown as a refund on my credit card. I opened a transaction issue ticket with paypal and they denied it "in favour of the seller". Since the transaction shows as completed in my activity, is it actually the case the funds were in fact transferred to the seller and they are just playing games?

[kernowlass]

@Saffron_Blaze 

Which dispute did you open?

If you opened the correct one for non receipt of item + paid using the goods/services option then not sure why you were denied.

[Saffron_Blaze]

Yesterday I asked the question as to who had my money... the seller or paypal? That's when they changed the ticket to exactly what you describe. I will update you once there is a decision made.