refund to a cancelled credit card and closed bank account

[Liquidus]

This November 3rd I received an email from paypal saying that I received a refund from digitalocean, it said "If the original payment method declines, we'll refund the money to your PayPal account" Nov 8th. I closed my bank account 11 months ago and canceled my credit card.

Today I opened my paypal account and it says it arrived Nov 8th, but my bank account is closed, why the refund was accepted?

[Liquidus]

So they lied in the email, here is what they said:

If the original payment method declines, we'll refund the money to your PayPal account.

[PayPal_Bindu]

Hello @Liquidus 

I completely understand your concern about the refund. Due to banking regulations, refunds must be sent to the card used at the time of payment. Even when it has been canceled or expired, the refund will be returned to your card and handled by your card issuer. If the card issuer declines the refund, the money will be returned to your PayPal balance. As the return wasn't happened, I recommend contacting your card issuer to locate the refund. If your card issuer is unable to locate the refund, you can contact PayPal support team to look into this further. 

Thanks for the help here @kernowlass!

I hope this information helps,

Bindu