Paypal Refunding - Advice Appreciated

mks2005 · 6 Aug 2008 at 20:03

Does anyone know how it works if you issue a refund on a Paypal payment, after you've initiated a withdrawl to your bank account, but before the funds have actually reached your account?

What happens to the original payment? Does it get cancelled, or does it go into your bank, with the refund coming directly out of your bank? And if so, can it still be susceptible to a chargeback?

I don't want to re-imburse the buyer and then have them chargeback the original payment, so if I wait for the funds to reach my bank account, can I then issue a refund via the original transaction thus making a chargeback not possible?

dntbloodshot · 6 Aug 2008 at 20:11

Chargebacks are possible no matter what. If the buyer does a chargeback and you have no money in the account, paypal will charge your bank account or card. If you refund now, the transfer to your bank acct will go through. If you have funds in your paypal account they will be used to refund. If not, see 1).

mks2005 · 6 Aug 2008 at 20:13

Possible even when I've issued a refund via the original transaction?

Indy500 · 6 Aug 2008 at 20:14

It will come from the funding source, unless paypal put a hold on the withdrawal to your bank account.

dntbloodshot · 6 Aug 2008 at 20:17

mks2005 said:
Possible even when I've issued a refund via the original transaction?

well, no, obviously, if you refund the original transaction it can't be charged back. But I would advise against sending a separate payment.

mks2005 · 6 Aug 2008 at 21:09

dntbloodshot said:
well, no, obviously, if you refund the original transaction it can't be charged back. But I would advise against sending a separate payment.

Thanks for the advice.

I'll wait til it's cleared in my bank account and then refund.

cheers.