Hey sassybb7,
Thank you for your post and welcome to the PayPal community. In addition to the response from @ kernowlass, when a refund is made and the card is expired, the funds normally are either added to the new card or the bank account linked to the original card. This will depend on the bank/card issuer. If by any change, the bank refuses to complete this task, the funds are returned to the PayPal account and available to imitate a withdrawal to your bank 🙂
Hope this clarifies the situation.
Carlos
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