Hi @rachelbarak,
Welcome to the community and thank you for your post!
I am sorry to hear what has happened. I know this must be concerning.
PayPal process payments instantly. If you received an email confirmation/receipt from PayPal when you made the original transaction, this would mean the merchant received the money. You can provide this as proof to the merchant if needed.
PayPal are a payment processor, we don't hold your funds. If your funds were debited from your bank/card, it would mean they were sent to the merchant.
Unfortunately, we cannot prevent a merchant from cancelling your order with them. If they have cancelled your order with them, the funds would have been refunded back to your bank/card.
All I can advise you is to follow up with the merchant regarding this.
I hope this helps!
- Rachel
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