Bank account funds missing after refund

Last week I was going to purchase something from a trusted online retailer (not ebay).I used Paypal at the checkout (aprox. $200). For some reason Paypal had my old billing address on file (not visible to me, on their systems) and it didn't match the one I gave to the retailer. I fixed the address issue with Paypal over the phone, but I ended up canceling the order and using my debit card from my bank account to pay instead. The retailer initiated a refund for my Paypal payment. The next day, ~$200 (the product amount) was deducted from my bank account. I assumed the debit card payment that had gone through normally, but the retailer contacted me to inform me it hadn't gone through, and when I checked my bank statement it appears as "PAYPAL ECHECK" (the first transaction appears as "PAYPAL INST XFER"). I put the order on hold until I could sort this out. Now, the first transaction (the cancelation) has been refunded onto my Paypal balance, but I'm missing $200 from my bank account with no mention of them on my Paypal site. What's going on?

Hi ReconGhost -
Sorry for any confusion with this and I suspect this may have already sorted itself out. That being said, if anyone else were to run into this problem here's what happened. When you initiate a bank funded transfer, even if that's refunded seconds later the fully automated processes governing bank transfers have already kicked in and we can't stop the request for the money from going out.
Now these funds are only going to make it as far as your PayPal balance and wouldn't be sent to the merchant. But when you resent the payment using your debit card you basically sent a second payment that's entirely separate from the first one. So you would see two debits from your bank - one to the merchant and the other, automated one, winding directly up in your PayPal balance.
By this point I expect that the bank funded portion has cleared your bank and has shown up in your PayPal balance for you to do with it what you will.
I hope that helps clear everything up!
- Andy

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