Automatic transfer - Problem

[eezychair]

I wanted to share my experience with PayPal and their customer service team's lack of expertise in resolving a simple issue I encountered.

I needed to refund a customer for returned goods. Upon clicking the transaction and selecting the refund option, I received a message stating, "account balance is insufficient. You need to add money to your account and then issue the refund." After reaching out to the customer service team, they advised me to add funds from my bank. I followed their advice, but after a lengthy 7-day wait for the funds to clear, PayPal automatically withdrew them. This left me extremely frustrated, especially since I had an unhappy customer expecting a refund, and I still couldn't process it due to the lack of funds in my account.

Despite explaining this to three different customer service agents, they all insisted that I had withdrawn the funds. Even after expressing that I had not and ruling out any unauthorized access to my PayPal account, they continued to question whether I had made an error.

To resolve this issue, I recommend disabling automatic transfers on PayPal to ensure you have the necessary funds in your account.

So to resolve this you need to disable automatics transfer on PayPal to ensure you have funds in your account  

[kernowlass]

@eezychair 

If you have automatic withdrawal of funds enabled then of course it will kick in if you have funds in your balance.

However you can issue a refund from either funds in your balance (if you have sufficient) OR the total amount of the refund from any linked and confirmed bank account (not debit card).

[calvindelosanto]

How many days it will be refunded or is paypal gonna give back those fund i have the same.issue

[eezychair]

@calvindelosanto I've had to disable automatic transfers, and now I'm required to manually add funds to PayPal from my bank, a process that I anticipate will take another 7 days. The recent decline in PayPal's customer service is frustrating, particularly since they've outsourced support to another country. The support team seems to struggle in comprehending simple problems or providing effective solutions. In the end, I've had to find solutions independently. 

[eezychair]

@kernowlass my bank account is linked and still states I need to add funds to the account to issue a refund. The customer now has opened a case even then when I try to issue a refund i get the same message " Your account balance is insufficient You need to add money to your account and then issue the refund"

[kernowlass]

@eezychair 

Sounds odd if you have enough in your bank account to fund the refund, the bank is confirmed and in the same name as your paypal account name?

However a quick way to add funds to a balance is not by bank transfer, you can get a mate or family member to use the friends/family option and send you a payment.

Its free as long as they use funds in their paypal balance OR a bank account (and not a card). 

[eezychair]

@kernowlass 

yes completely baffled I've used PayPal for my other business for over 11 years without any problems. Because it's a business account and the amount is £999, I can't go through the friends and family option. I was thinking of just sending the £999 directly to the customer through PayPal, but that would mean losing out on the PayPal fees, and they used the 3-split payment option.

PayPal should have informed me to disable automatic transfers when they instructed me to move funds into the account. Now, since 7 days have already passed, I'll need to wait an additional 7 days for the new transfer to be credit into paypal.

[kernowlass]

@eezychair 

I meant using the friends/family option to add funds to your paypal balance to make up the amount you need and NOT to refund the client.

Secondly do not refund any other way, if you don't use the refund option OR refund via the dispute then paypal may not see any other way you send funds to the buyer as a refund and you may end up refunding twice.

Lastly any paypal fee is NOT returned as part of any refund made. That is why you have to add the fee amount to your balance before you can give the client a full refund.