Query about Pay in 3 refund for returned item

[nrkazmi]

I recently purchased an iphone from an ebay seller using Paypal Pay in 3 installments. My first installment has gone through. However I found out that the iphone that I purchased had its IMEI blocked so basically it was not working and not the product as it was shown on ebay. So i started a return/ refund with the ebay seller and he has asked me to return the phone so the refund process can be initiated. I am going to return the phone by post tomorrow. My worry is that how will be the refund process, because to my understanding paypal pays the ebay seller the full amount and then charges the buyer in 3 installments. So how will this refund work for me because for a normal account you get your money back to your linked card, but here, so far I am charged only 1/3 of the price, the next 2 pending for next 2 months, while the seller will be refunding full amount to paypal, so how will I be ensured that my upcoming transactions for next 2 months will be cancelled so I am not charged. I tried to dispute this gone through amount via paypal resolution centre, but it gives the message that you are not authorised to dispute this amount. So I am a bit worried. Can anyone be kind enough to explain to me how this will work through. Do i need to contact paypal through some other way??

[PayPal_Meghan · Accepted solution]

Hello @nrkazmi, 

Thanks for joining the PayPal Community! 

I understand you'd like to learn more about how refunds work regarding Pay in 3. When the merchant issues a full refund, it will be applied to your Pay in 3 loan. Since you've already made an installment, the overage will automatically be credited into your PayPal balance. You can then withdraw the overage.

I hope this helps! 

- Meghan

[nrkazmi]

Thank you very much. Thats was very helpful