The only time that the funds would be back in a PP account is if the item(s) were originally paid via PP with funds from the PP account. So if you used your Debit Card or CC, the refund should appear wherever the funds were paid. One month is too long.
I would check your recent statement and if you do not see it there, then call your financial institution. I had one once on my Amex Card and did not realize it was there. My bank will take a week to clear a check and 2 days for payment(s) from Etsy (I know, I need to find another bank) 😞 The only other possibility is that the seller does not have enough to cover the refund, but that should not be your concern because PP will refund you and go after the seller for the amount.
Good luck!
