When you file that dispute with your bank, and they give you the $229 credit, they take that from PayPal. As such, PayPal then goes back to the seller and takes it from them to cover it, plus the additional $20 chargeback fee. So follow the money path. 1. You pay $229 to seller. 2. You then file a dispute with the bank. 3. The bank gives you $229 credit. 4. The bank then takes this $229 from PayPal to cover the credit they gave you. At this point, the money you paid has been returned to you. 5. PayPal takes the money back from the seller to cover what they had to pay, and tacks on the $20 chargeback fee. 6. To complete the circle, you would need to send the seller their money again, because it has been returned to you and neither they nor PayPal has it anymore. You do. Did this show up in your PayPal Resolution Center at all? If so, I would reply there if you can and let them know about your mistake, and that you would like to cancel the dispute. They should be able to work with the bank to reverse everything. This would mean the bank would take the $229 again from you to give it back to PayPal, and PayPal would then be able to give it back to the seller again. The seller would still be out the $20 chargeback fee, though, unless you cover it for them separately.
... View more