There are three possible reasons:
- An external chargeback has been received, and the end-user has contacted their bank directly to raise a chargeback. To learn more about the PayPal dispute and chargeback flow, please read this article. If a dispute is opened, PayPal may put a temporary hold on the disputed amount until the case is resolved by the buyer and seller or PayPal. To resolve the dispute, you will need to go to the PayPal Resolution Center and select the appropriate option. In most cases, there will be an option to issue a full refund to the customer, and by selecting this option, the held payment will be refunded back to the buyer, and the case will be resolved and closed.
- The merchant does not have sufficient funds to issue a refund in the PayPal account. If you are new to using a PayPal account with Solid, you may need to conduct more transactions to build up sufficient funds in your PayPal account.
- The refund request has been declined by PayPal due to suspicious or unusual activity associated with the account or transaction. In such cases, you should contact PayPal's customer support to resolve the issue.
It is important to ensure that you have sufficient funds in your PayPal account and that all transactions are legitimate and conducted according to PayPal's terms and conditions to avoid any issues with refund transactions.