Buyer Overpayment

[GMPeyton]

A buyer accidentally overpaid me by a LOT.  An honest mistake.  It is going to overdraw her bank account.  I have no problem issuing a refund.  My concern is this:

1.  Her bank is going to reject the payment due to insufficient funds.
2.  I'm assuming that means they will put a stop payment on the funds she sent to me that are reflected in my paypal balance right now.

3.  If I issue a refund using the balance, and then the bank puts a hold on the original payment,  will paypal then try to fund the refund from my back up account?

In other words:
buyer pays me $500 accidentally.
I issue a $500 refund

Bank cancels the original $500 payment the next business day (it's a weekend)

Paypal declines the original payment and takes it from my account the next business day

I've now refunded the $500 and had another $500 pulled out since her original payment was declined.
I'm out $500 plus any fees from it being deducted from my backup payment source.

Am I being paranoid or could this happen?

[lancelotme]

if your friend does not have enough fund in her bank account($500),then the payment will bounce,just like she wrote a rubber check.

Paypal will try two times to withdraw fund,after that,it will give up.

So that $500 deposited in your paypal account will be cancelled.

Not sure if your friend's bank will levy a fee for insufficient fund ?

It is better for you to do nothing ,just dont try to spend that 500 or transfer to your bank account.  

[lancelotme]

In other words:
buyer pays me $500 accidentally.
I issue a $500 refund

Bank cancels the original $500 payment the next business day (it's a weekend)

Paypal declines the original payment and takes it from my account the next business day

I've now refunded the $500 and had another $500 pulled out since her original payment was declined.
I'm out $500 plus any fees from it being deducted from my backup payment source.-------

-----------------------------------------------

it depends on how you refund the $500.

if you go back to the original transaction where she sent you $500,and refund her $500,then the payment sum is zero.

When Paypal found out she does not have enough fund in her bank account,it will reverse the amount in that transaction which is now zero.

In other words,there is nothing to reverse,zero is zero.

best is to do nothing.let Paypal reverse that $500 from the original transaction. 

[DPCreations]

Be careful.  For now do NOTHING.  If you're not careful you could loos $500 of your own money in addition to the deposited money being taken back.

Take care of your own end; let the sender take care of the other end of the deal.  If the sender has a problem with the sender's bank account, that is the sender's problem, not your's.

You don't know all the details.  All you know is what the sener wants you to know.  Don't fall for it.

Additionally, you have described how or why this happened.  Those details are extremely important.