Here are the paypal instructions for cancelling an unauthorized transaction... When PayPal believes that a payment is unauthorized, we place a hold on it. Money can't be withdrawn until we determine if the payment is authorized. If the payment is unauthorized, the money is returned to the sender's account. Sellers who meet the eligibility guidelines unde PayPal Seller Protection are protected. If there is unauthorized or suspicious activity on your account, you should report it through the Resolution Center. Here’s how: Log in to your PayPal account. Click Resolution Center at the top of the page. Click Dispute a Transaction. Select Unauthorized transaction and click Continue. Follow the steps to report the transaction. If you can't log in to your account: Click the Security Center link at the top of the page. Click Start an unauthorized transaction claim on the left side of the page
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