Question :
How is a refund credited?

Answer :
When a payment is refunded using the Issue Refund link, PayPal credits the refund based on the source of the original payment.

* For payments sent using a credit card, PayPal credits the credit card.
* For payments funded with another funding source, PayPal credits the refund to your PayPal balance.
* For payments funded by a credit card and another source, PayPal credits the credit card portion to the credit card and the remainder to your PayPal balance.