When a buyer pays and then wants cancellation, where will funds be taken from?

[leareamc]

If a buyer pays for an item and you have already taken the funds out of the Paypal account, then they turn around and requests cancellation, will your PP acct simply be put into negative when they get automatically refunded... or will PP try immediately take the funds from your backup funding source? My back up funding is a bank acct and I don't keep enough funds in that particular acct to cover a refund. I want to give the refund immediately but do not want an attempt on that bank acct which will leave me in negative and incur overdrawn fees. If the system refunds them and the PP acct will just be left in negative that is fine, but is that what will happen?

[missjen831]

They’ll pull it from your back up funding source. It’ll probably be an e-check and if it bounces they will attempt to put it through again after a few days and you may incur non-sufficient funds fees from your bank 

[leareamc]

Is there any way to avoid this where PP covers the refund and simply puts your PP acct in negative? How can I check to make sure my bank acct is even listed as a backup funding source? I am not 100% positive it is? If it is, can I remove  it as a backup funding source and how?

[duchess-at-speakeasy]

Check your Paypal profile.

~~C~~

[missjen831]

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@leareamcwrote:

Is there any way to avoid this where PP covers the refund and simply puts your PP acct in negative? How can I check to make sure my bank acct is even listed as a backup funding source? I am not 100% positive it is? If it is, can I remove  it as a backup funding source and how?

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You would have to remove your funding source as far as I know. I’m not sure if PayPal will let you remove all funding sources (I’ve never tried doing that). I think if the e-checks bounce twice, PayPal refunds the buyer out of their pocket and your PayPal goes into the negative until you pay them back. You won’t be able to use your PP account until your out of the negative. I have no personal experience with this so I may have some of this wrong & if so I do apologize.