I recently sold an item on ebay for $450. I required immediate payment from the buyer through PayPal and the transaction went smoothly. Due to a mistake on my part I listed the item wrong and it was actually a 16gb iphone instead of a 64gb as was listed. The buyer sent me a message stating the problem and I quickly replied and told them I would happily refund his money if he returns the item. Once the buyer sent me a return request through ebay and I accepted it, the funds that I had left in my paypal account were being held by paypal until the dispute was settled. I recently just got my item back in the mail from the buyer but have no idea as to which account I need to have the money in to send him a refund. I'd imagine that the funds that were being withheld by paypal would be the funds used to refund the buyer. I never transfered any of the original payment funds out of my paypal account so the full amount was there. There is no history or paper trail that I know of, to be able to see if the funds where automatically taken from my PayPal account and returned to the buyer. Please help clear up my confusion because I don't want to hit the issue a refund button while the funds are not visible to me. And I don't want my bank account to be overdrawn.
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