@Runningfish How did you return the money? If you didn’t click “deny” on the payment or didn’t issue refund the right way, a sketchy sender could capitalize on this. Did you return the money by sending money in a separate transaction to a different account or did you click on the original transaction and clicked “Refund this payment”? The fact that you needed proof that your refunded indicates that you probably didn’t do refund the right way. If you got a record of the refund, just click on it and click print to save as pdf and upload the pdf to PayPal. Is there a dispute opened on the originally received payment?
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