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If I send money for a service, that is subsequently not delivered. The payment is on "Hold" on the receiver's side, they have agreed to a refund as well. Can I somehow cancel the transaction instead and get my funds back that way?
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No, the seller has to issue you a refund which if they can do from their balance (if not on hold) or from their linked funding source if available in their country.
If you want to wait 21 days for the funds to be released you can do but it would not be a full refund as paypal does not return the fee that the seller was charged as part of any refund that is made.
However you can open a dispute for non receipt of service by clicking on the transaction and using the report a problem link bottom of that details page and if you escalate to a claim and win you should get a full refund, only if you win though.
Advice is voluntary.
Kudos / Solution appreciated.
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No, the seller has to issue you a refund which if they can do from their balance (if not on hold) or from their linked funding source if available in their country.
If you want to wait 21 days for the funds to be released you can do but it would not be a full refund as paypal does not return the fee that the seller was charged as part of any refund that is made.
However you can open a dispute for non receipt of service by clicking on the transaction and using the report a problem link bottom of that details page and if you escalate to a claim and win you should get a full refund, only if you win though.
Advice is voluntary.
Kudos / Solution appreciated.

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