Payment received for item which was cancelled?!?

[Eth-char]

I listed an item which sold however the buyer contacted me as no longer wanted it. We agreed to cancel the order. Which was successful. I have now received payment via PayPal for the item (appears slightly less than what was stated in the payment t email). I need to refund the buyer, how do I do this and why did this happen if it was cancelled??

[kernowlass]

You cancelled the transaction.

You can't cancel a payment as once authorised it has to process through to paypal > then you can refund it.

The money would have been less than the auction price as your paypal fee of 3.4% + 20p would have been deducted as well.

From paypals pages >>>

 These steps apply to UK Personal accounts. If you have a Business account, please log in to see the steps that apply to you.

You can issue a full or partial refund of any payment you received within the last 60 days.

To issue a refund:

1. Log in to your PayPal account.
2. Find the payment you would like to refund in your Activity, open the transaction details and select Issue Refund.
3. Enter the refund amount and click Continue.
4. Confirm the information and click Issue Refund

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

As I give up my time to help you a thank you would be cool.

If you want to leave kudos that's just as good.

If I answered your question for you then marking one of my replies as a solution would be much appreciated.