I think the problem lies solely with Singapore Airlines/SIA, not PayPal. Submitted my refund request on 3 May. Didn't hear from SIA, so kept having to chase, until eventually they told me they had 'processed' the refund on 31 July, but that I would have to wait 4-6 weeks for PayPal to make the payment. 11 weeks later, still no refund. I have contacted PayPal who said: "Refunds are processed by PayPal instantly...The moment we get notification from your merchant the money will be returned to your card." So basically, when SIA tell you it's with PayPal - it's most certainly still with SIA. I have called SIA - but it's hopeless. I have asked them to provide proof that they have requested the refund through PayPal (e.g. the Transaction ID), but the Contact Centre staff you speak to have no idea - all they can do is send emails to the 'Finance team' - who never ever get back to them. I have asked to speak to the Finance team directly (they won't allow that, I have asked to speak to someone who is based in Singapore - hoping that they will have more authority than their contact centres in India/Philippines - they won't allow that. Singapore Airlines will probably use any excuse to hold on to your money as long as possible - in the current climate it's better for their cash flow. I have been so overwhelmingly frustrated with the way that SIA have managed this and it has put me off from ever flying with them again!
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