Refund through PayPal to Closed Bank Account

BreadTwo on 07/03/2024 - 18:42

I need to get a refund for an item I bought from AliExpress 3 months ago, but I closed my bank account 2 months ago.
The payment was made through a debit card linked to PayPal. In this case, will the refund automatically go into my PayPal account? Or should I speak to AliExpress to get the refund into another account, or just ask PayPal to receive the refund amount directly?
The bank is ANZ. I've read that if a bank account is closed, the money would be deposited into PayPal instead. Is this correct?

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Comments

  • Hybroid on 07/03/2024 - 18:45
    +7

    Contact PayPal for confirmation rather than taking random people's responses as fact: https://www.paypal.com/au/smarthelp/contact-us

    02 8223 9500
    8am to 8pm AEST Monday to Friday

    • BreadTwo on 07/03/2024 - 19:00

      Thanks for the comment I've already made an inquiry, but I'm not sure when I'll receive a response, so I'm asking if anyone has had a similar experience or maybe I should try calling tomorrow.

  • payless69 on 07/03/2024 - 18:54

    Why would you close a bank account and ask for a refund after 3 months? Ali has the drop ship agreement, the shipper has nothing to do with the supplier and that is hidden to you.
    Good luck with Paypal!

    • BreadTwo on 07/03/2024 - 19:06

      I closed my bank account at the beginning of this year due to service issues that were causing me stress. I ordered the item at the end of December, naturally assuming it would be delivered, but it didn't arrive. The seller said they would send it again, so I waited, and it ended up taking this long.

      • boomramada on 07/03/2024 - 19:08

        Now it causing you more stress.

        • BreadTwo on 07/03/2024 - 19:10

          Yes, that fact makes me dislike ANZ Bank even more. >_<

      • payless69 on 07/03/2024 - 19:19
        -5

        I agree on the ANZ stress, same here but rather than closing the account I let them suffer. For 15 years they mail statements for 27c because the mess they are in.
        Paypal is worse:
        After 5 dead ear cameras (ebay b4 Ali) each worth around $5 I got 5 refunds without returns. The I ordered a charger and battery combo but only the charger arrived. Seller closed account and Paypal wanted extra money from me for the missing part that I had already partially paid for. Paypal told me: 5 strikes and you are out, then they sent a crooked dept collector after me. Now my Paypal me reader is bricked and my credit file stained.

        So I blew a grand on Ali, saved 50 bucks and got an expensive instrument dead on arrival. After a heated exchange with 4 videos of proof I got half my money back!

  • ddhar on 07/03/2024 - 21:23

    I had a similar situation with a closed credit card. Paypal automatically refunded the funds to the closed card (and clearly stated it on email). In my case, the credit card company advised they automatically send a cheque if a refund hits a closed card. I got the cheque about 2 weeks later.

    My advice: Call (not email) both Paypal and ANZ to trace the fund. And be patient.

    • BreadTwo on 09/03/2024 - 21:31

      Thank you. I called ANZ, and they said that if the account is closed, the money goes back to the seller. In that case, I expect the credit will appear in my PayPal account.

  • cheesecactus on 09/03/2024 - 01:37

    I had a Qantas refund sent to a closed ANZ account (so $2k-ish).

    I called ANZ and they saw the amount sitting there. I believe they either send me a cheque or did a bank transfer to a different bank (my memory fails me, this was ~2yrs ago).

    That all being said, they also told me that apparently they dont do this anymore, and that in the future their policy would be to reject the refund, so it'll go back to the seller.

    Qantas was absolutely impossible to deal with, trying to get them to send it to a different bank acct with a stat dec etc. Absolutely shocking.

    Anz was actually super easy to deal with. Call them.

    • BreadTwo on 09/03/2024 - 21:35

      Thank you. I called ANZ, and they told me that the money is rejected if the account is closed and automatically goes back to the seller. The policy seems to have changed to this recently, just as you mentioned. In that case, I hope the refund will be credited to my PayPal account.

  • BreadTwo on 15/08/2024 - 12:03
    +2

    Update:
    When I called ANZ Customer Service, they informed me that since the account was closed, the money would automatically return to the original source (which could take up to 30 days). However, the funds did not return to my PayPal account. After 30 days, I contacted the bank again, only to be told that the money was held by ANZ and could not be accessed without personal verification. They instructed me to visit a bank branch in person with my ID for verification before they could release the funds. After visiting the branch and showing my ID, I had to wait another 20 days (with one more phone call) before I finally received the money back. Since the nearest ANZ branch had closed, I had to travel to a farther location, which, when considering travel and waiting times, resulted in a significant waste of time. I've dealt with many banks, but I believe ANZ's service is truly the worst.

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