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genealogy-janet
Community Member
Posts: 4
Registered: ‎05-26-2006

Why is paypal holding my refund?

I paid for an auction using paypal.   The seller has since contacted me that they found a defect and wants me to cancel the transaction.   I checked paypal to see if the seller had issued a refund.   It shows that he has...but....the refund is being temporarily held.   What does that mean?   Do I need to cancel the transaction to get my money back?   Or, should I just hangf tight to let the money clear?   Why would Paypal "hold" the refund?

 

Thanks for your insight on this one.

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texasgal35
Community Member
Posts: 143
Registered: ‎01-16-2011

Re: Why is paypal holding my refund?

in reply to genealogy-janet

Paypal is holding your funds so they can make  interest on your money. Sit tight..you should eventually get it all back...if the status changes to "investigating"  watch out.

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genealogy-janet
Community Member
Posts: 4
Registered: ‎05-26-2006

Re: Why is paypal holding my refund?

in reply to texasgal35
Date: Aug 26, 2013
Time: 11:02:31 PDT
Status: Placed
 PayPal has placed a temporary hold while we're reviewing it. We'll contact you shortly with further information.

 

 

My payment cleared on the 25th.   Seller sent refund on the 26th.   According to the detail-"PayPal has placed a temporary hold while we're reviewing it. We'll contact you shortly with further information."

 

Sitting tight works for me.   Thanks.

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texasgal35
Community Member
Posts: 143
Registered: ‎01-16-2011

Re: Why is paypal holding my refund?

in reply to genealogy-janet

keep your eye on it though, they may try and steal your cash if they feel you are a easy target.

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profdata
Community Member
Posts: 96
Registered: ‎02-04-2003

Re: Why is paypal holding my refund?

in reply to texasgal35

If the seller didn't have the funds in their paypal account, the refund will be coming from their bank account.

 

Paypal wants to make sure the funds do clear the seller bank account before they release it to you.


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genealogy-janet
Community Member
Posts: 4
Registered: ‎05-26-2006

Re: Why is paypal holding my refund?

in reply to profdata

"If the seller didn't have the funds in their paypal account, the refund will be coming from their bank account.

 

Paypal wants to make sure the funds do clear the seller bank account before they release it to you."

 

Profdata, I think that you may be right.   Giving me reason to "sit tight" and wait before agreeing to complete the transaction cancellation the seller initiated.

 

I did e-mail the seller to let her know that the funds are being held and asked her if she had any idea why paypal has placed a temporary hold pending review.   Still no action from paypal... and no promised contact with details. (we'll contact you shortly with further information.)   Heres a copy of Paypals transaction details:

 

If you paid by debit or credit card, your refund will go to that card. Otherwise, your refund will go to your PayPal account.
 Date  Type  Status  Details  Amount  Date  Type  Status  Details  Amount
Original Transaction
 Aug 25, 2013Payment To *** RefundedThe seller has refunded this payment in full. Go to the transaction details to see the payme...
The seller has refunded this payment in full. Go to the transaction details to see the payment method that was refunded.
 ...-$16.25 USD 
 
Related Transactions
 Aug 25, 2013Add Funds from a Bank Account CompletedYour transfer from your bank account to your PayPal account is complete.
Your transfer from your bank account to your PayPal account is complete.
 Details$16.25 USD 
 Aug 26, 2013Refund Completed Details$16.25 USD 
 Aug 26, 2013Temporary Hold PlacedPayPal has placed a temporary hold while we're reviewing it. We'll contact you shortly with fu...
PayPal has placed a temporary hold while we're reviewing it. We'll contact you shortly with further information.
 Details-$16.25 USD 
Total:$0.00 USD 

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genealogy-janet
Community Member
Posts: 4
Registered: ‎05-26-2006

Re: Why is paypal holding my refund?

in reply to genealogy-janet

Paypal did send an e-mail.   Here's what they said:

 

Hello ***,

*** has issued a full refund for your payment.
Temporary Hold Information: A temporary hold has been placed on funds that were returned to your account because you used Instant Transfer to fund the original payment. The funds from this payment cannot be released until they have arrived from your bank account, which usually takes 3-4 business days.



----------------------------------------------------------------
Original payment details:
----------------------------------------------------------------

Date payment sent: Aug 25, 2013
Amount: $16.25 USD


Thanks,

PayPal

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Community Member
Posts: 1,981
Registered: ‎04-02-2003

Re: Why is paypal holding my refund?

in reply to genealogy-janet

My payment cleared on the 25th.   Seller sent refund on the 26th.

 

Since you used an instant transfer, your payment didn't actually clear on the 25th. Paypal advances the money to the seller since you have a CC on file.

 

They don't advance anything when it comes to a refund.

 

 

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sandypurins
Community Member
Posts: 3,011
Registered: ‎01-27-2009

Re: Why is paypal holding my refund?

in reply to genealogy-janet

genealogy-janet wrote:
Still no action from paypal... and no promised contact with details. (we'll contact you shortly with further information.)

The PayPal email message you posted explains exactly why the refund is pending... did you just now receive that email message?

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d-k_treasures
Community Member
Posts: 3,386
Registered: ‎01-19-2009

Re: Why is paypal holding my refund?

in reply to sandypurins

sandypurins wrote:

genealogy-janet wrote:
Still no action from paypal... and no promised contact with details. (we'll contact you shortly with further information.)

The PayPal email message you posted explains exactly why the refund is pending... did you just now receive that email message?


While that is exactly why the refund is pending, I KNOW that in the case of an instant transfer, the money is gone from a bank account the day it's requested.

 

So why(as if we don't know) does it take 3 days for PP to 'receive' that money?

 

I am NOT a follower.
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sandypurins
Community Member
Posts: 3,011
Registered: ‎01-27-2009

Re: Why is paypal holding my refund?

in reply to d-k_treasures

The refund is pending until PayPal receives communication from the buyer's bank that the payment has cleared... that communication is not instantaneous.  The transaction is done via ACH, which is a slow batch process.

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Community Member
Posts: 1,981
Registered: ‎04-02-2003

Re: Why is paypal holding my refund?

in reply to d-k_treasures

 I KNOW that in the case of an instant transfer, the money is gone from a bank account the day it's requested.

 

So why(as if we don't know) does it take 3 days for PP to 'receive' that money?

 

The money is gone the same day it is requested but paypal does not "receive" the money the same day it is requested.

 

They advance the seller the money to make the payment "instant".

 

Depending on the variables it can take 2-5 days for the e-check to actually clear.

 

Paypal makes an e-check "instant" if a buyer has a CC backup.

 

 

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Community Member
Posts: 228
Registered: ‎03-27-2009

Re: Why is paypal holding my refund?

in reply to d-k_treasures

For billpay at a bank, the payment status is "Funded" immediately. And the balance is reduced, and the money is gone.

 

Yet, the electronic payment is not received by the payee for several days. Who has the missing money during that time?

 

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d-k_treasures
Community Member
Posts: 3,386
Registered: ‎01-19-2009

Re: Why is paypal holding my refund?

in reply to sandypurins

sandypurins wrote:

The refund is pending until PayPal receives communication from the buyer's bank that the payment has cleared... that communication is not instantaneous.  The transaction is done via ACH, which is a slow batch process.


ACH is an overnight process.

 

I am NOT a follower.
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pinkfloyd_the_barber
Community Member
Posts: 277
Registered: ‎11-26-2009

Re: Why is paypal holding my refund?

in reply to d-k_treasures

d-k_treasures wrote:


ACH is an overnight process.

 


No, It isn't . It takes approx 3 days

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Community Member
Posts: 1,981
Registered: ‎04-02-2003

Re: Why is paypal holding my refund?

in reply to d-k_treasures

ACH is an overnight process.

 

 

Really?

 

:catlol:

 

 

 

 

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sandypurins
Community Member
Posts: 3,011
Registered: ‎01-27-2009

Re: Why is paypal holding my refund?

in reply to d-k_treasures

d-k_treasures wrote:

ACH is an overnight process.


There are many steps in the processing of a PayPal bank account funded payment... it starts with PayPal initiating the request and it ends with PayPal receving notification from the buyer's bank indicating whether the payment has cleared.

 

Exactly which steps do you think are completed overnight?

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sandypurins
Community Member
Posts: 3,011
Registered: ‎01-27-2009

Re: Why is paypal holding my refund?

in reply to hissawin

hissawin wrote:

For billpay at a bank, the payment status is "Funded" immediately. And the balance is reduced, and the money is gone.

 

Yet, the electronic payment is not received by the payee for several days. Who has the missing money during that time?


Yes... some of my billpay payments are completed the next business day as long as I initiate the request no later than 2:00 PM Pacific Time... others take at least one extra day to complete, and... that's just the first part of the process.  The communication back (about whether the payment was succesful) is another day.

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Community Member
Posts: 1
Registered: ‎01-02-2014

Re: Why is paypal holding my refund?

in reply to genealogy-janet

All the rubbish about the 'clearing time' on money is paypal speak for 'we want to earn interest off your money'. I work for the system that processes the paypal payments and it takes a minute or so for the transaction to be made. We average around 90 million transactions a day in the UK through the automated clearing system. There is no reason for paypal to keep refunds except to earn interest off the money. They obviously feel that the 3.5% they charge the seller is not earning enough for them and remember they lose that when they refund.

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motorcarportfolio
Community Member
Posts: 130
Registered: ‎06-12-2004

Re: Why is paypal holding my refund?

in reply to zipimini

dkid2000 is right,99% of the time...however what the other poster said, IF they do work for them is probably true also...just let us know how it ends for you...Good luck!

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