Created a Paypal Business Account upon being asked to by the developer who assured me it's a good thing, that allows me to accept all kinds of European payment methods. After my cart was upgraded to Business Paypal account functionality I received an order. After reviewing the order I have noticed that the buyer was Unverified and they were asking to ship it by FedEx and that created a red flag. I decided to issue a Full Refund to the customer to be on the safe side. I went to the admin area of Paypal Business Account and clicked on the MAKE REFUND button and... it said that I do not have enough balance in my account to make the refund! My balance was that one single and the very first order amount! How in the world is this behaviour by Paypal is legal? This is the buyer's money, not Paypal's! If a seller decided to issue a full refund Paypal must be happy to refund the money and not try to keep it!
OK, I understand, but when I communicated with Paypal they wrote that in order to issue a full refund to the UNVERIFIED customer I must wait at least until January 2024 since Paypal wants to keep the money for a while. Perhaps they want to earn some interest on the money, but what will happen when the buyer submits a chargeback. That will be Paypal's fault. Additionally, Paypal should not charge any fees for payments from unverified buyers and if they do, they should promptly refund them once a seller asks to issue a full refund, since there is a risk of chargeback. So does that make sense to you that in order to issue a full refund Paypal is asking me to allow them issue a full refund only in January 2024?
