Hi @shanaia18,
Thank you for joining the PayPal community and for posting! I'm sorry to hear of the difficulty receiving a refund.
I am unfamiliar with that error. Did the seller issue the refund through the transaction, or as a separate payment? If the refund was issued through the transaction, the funds should be automatically returned to the payment method that was used to make the payment. It may be possible that the payment method does not allow the funds to be returned, and that may be a reason that you would see that the refund was refused. You could check with the bank/card issuer to determine if they refused the refund. If that is something specific to that bank or card, it would be important to know, so you can plan for whether or not to use that instrument in the future.
After that, I would suggest contacting Customer Service to allow a representative to determine the state of the funds at this moment. If they have been returned to the seller, the seller may be able to reissue the refund as a payment directly to you. That is typically not recommended, but if the payment method did in fact refuse the funds, that would at least enable you to receive the money into your PayPal balance to be used or withdrawn to a different bank or card.
I hope this can be straightened out quickly!
Olivia
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