Microsoft didn't actually refund the payment they sent you a payment . If the refunded it which is normal process the money would go back to bank which takes 5-7 days . Because they sent money they **bleep** it up. You have to go back to Microsoft. PayPal can't do anything. If Microsoft don't help file a chargeback with your bank
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Sounds like merchant reserves. It's placed as an insurance for PayPal. The reserves have to be on an account over 30 days for them to even consider reviewing them again. If they are not then there is no point in calling PayPal as they can't do anything. If you want your reserves review you need to email only, go to contact us selected message centre select reserves and compose message. Customer service cannot do anything
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You should open unauthorised claim against the payments that were sent from your account . And you should refund any payments that you received that you weren't expecting. Change your password too
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If the merchant uses PayPal to process the payments you will see pay with PayPal at checkout. If you don't see if then that merchant doesn't accept PayPal
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Select having trouble logging in and you will get various options if you can't do it that way contact customer service and they will provide a work around
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