Trying to issue a refund on a claim but the funds are being held?

[ellenmcb33]

I've had to issue my buyer with a full refund because of problems with sending their package. He launched a dispute and we were in communications and since we agreed to me issuing the refund he escalated it to a claim. However, because he launched a dispute, his payment to me was held by PayPal so now I have "insufficient funds" to refund the customer because PayPal is holding his payment. I can't find out how to refund his money, without having to transfer money out of my bank account into my PayPal account, essentially meaning I am paying PayPal for the item?? I don't understand what to do!!

[kernowlass]

@ellenmcb33

Just contact customer services and authorise them to release the pending funds back to the buyer and close the claim.

Click on the words "Contact" at the bottom of your paypal account summary page and use the phone option (if there is one in the country you are in) > click on the "call us" option on the left (fees "may" apply so check the cost with your phone tariff first, as you sometimes have to wait a while to connect).

When you get through don't select any options just hang on till you get transfered to an agent or say the word "agent".