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Not enough money in my bank account for paypal refund!!!

I refunded one my customers there money back.
I had the funds in my paypal account but it was $7 short. So it had to go to my bank account.
I thought it would only take out $7 but I realized it is going to take out the full amount of the refund. So I called my bank and told them to not allow paypal to charge.
So since paypal cannot get the funds from the bank account what will happen next???
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  • Hi Josh-

    When you send a refund using the Issue Refund link, PayPal draws the refund amount from your PayPal balance. If your PayPal balance does not cover the refund, the full amount of the refund will be requested from your confirmed U.S. bank account. Bank accounts outside the U.S. cannot be used to issue refunds. If your PayPal balance does not cover the refund and you have a confirmed bank account in the U.S.:

    PayPal withdraws the refund amount from the primary confirmed bank account on file.

    The refund status is "Pending" until the funds clear.

    If your bank account does not cover the refund and you don't have a confirmed bank account in the U.S., you'll see a message informing you that you cannot issue a refund.

    If you're in the middle of this process, here are a couple of options:

    1. Bring in the $7 from your bank account as an "Add Money" transaction and when the amount posts in 3-5 business days to equal the full refund amount, you can send at that time. If you issue the refund at that time, you'll also be refunded the amount of your PayPal fees.

    2. Initiate a separate "Send Money" transaction to the buyer, which would then allow you to use your balance as a portion of the full funding source, but would not result in your fees being reimbursed because it's going to appear as a unique and separate transaction.

    (I'm not sure if you have a credit or debit card on file, making the payment of the remainder over your balance an instant transfer, or allowing you to choose your credit card as the funding source for the rest of the Send Money transaction.)

    In either case, I'd suggest keeping the buyer informed of the process, as well as the anticipated time it will take to get the money returned to them.

    Thanks,
    PayPal Jason
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  • I’m frustrated
    I just got off of the phone with paypal except I was unaware that they would not get the remaining 8 dollars until last night at the check out line in walmart where my card was declined because instead of the 8 dollars they took a full 1000. Not once have I seen anything other than your paypal balance is used primaraly.....This is a huge problem. To make matters worse the cust serv rep that I spoke with was very rude and said that I could not speak to her supervisoir because "She was the boss" What amazes me more than that is that I have yet to find another number to call to report her and the problem...any suggestions Jason?
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  • Hi Shaun-

    I'm confused as to whether your situation is related to the situation outlined with Josh above. As noted in the reply there, when doing a refund, it's all or nothing with the PayPal balance. If there are insufficient funds in the balance, the full amount comes from the bank account (I'm assuming this means you currently have about $8 less than $1,000 in your PayPal balance based on your description).

    Please call back to PayPal at the number you dialed and let the agent know you'd like to speak to someone about the treatment you received on the prior call. If you are not able to relay the information, let me know and I can follow up. However, we can view the time of prior calls and the agents involved on those calls so someone should be able to assist you quicker in that way.

    If your balance concern is different than the one that Josh initially reported or you require a follow up on reporting the agent you dealt with by phone, please start a new thread here ( you can reference the title of this thread). This keeps other parties from being copied on the specific response to your question.

    Thanks,
    PayPal Jason
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  • Your right my complaint that PAYPAL should not lead you to believe that anytime, refund or not, that you send money it is drafted from your balance then the remainder from your bank account, should not have been thrown in on this subject but for the last 2 hours up until reading the first part of this post I thought that no one I had talked to understood Paypals beloved customers are a bit mislead at their own cost, So I do apoligize for stopping by to pat him on the back and to let him know that he was not the only one who based a confirmation off of the purpose of the account to serve as a short stop for paypal with everything but a "refund". I think that we all would agree that everything is cause and effect, and the effect that I have on this question by stopping and writting out of place was still caused by the two ladies with customer service that I spoke with, first by one being told that she understood that it was a problem paypal needed to address but had not had time, and the next telling me that did not understand the problem causeing me to ask for her supervisor only for her to tell me that she was the boss and the man that signed her checks did not have a phone, but if I wanted to call the same number back that has not gotten me anywhere as of yet I was more than welcome to ask for another supervisor. Now after all of this plus overdraft charges from my bank and 3 hours of my day wasted on fixing the other effects. I still have not talked to one person that realizes that I keep asking for the next person up the ladder in hopes that I find someone that cares about my overdraft charges along with the other customers that this has been a problem for. And just incase you think I am heartless I want you to know that I have you, Jason, in mind also......Because I feel bad that you had to put up with me causeing mayham in your work space by coming in the door not taking a number and reading the map that would have lead me to the right place to voice my opinion............But think NONE of this would have happened if they could just take the time to fix where we were mislead.....by the phrase that not only states Paypal balance is drained before being backed by our bank accounts. This is the CAUSE that has allowed all of the neg effects that we could have all done with out. Thanks for your time Jason and once again sorry about Joshes Thread
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  • What happens when Ebay dose a refund to a scumbag Thief Buyer and my paypal shows a - balance and I block paypal from assessing my Bank account ?
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