Funds from a denied payment are returned to the appropriate funding source for that payment. If you used funds from your PayPal balance to make the payment, the money is returned to your PayPal account. If you funded the payment with a credit card, the money is returned to your card. Depending on your card issuer, a credit to your credit card may take up to 30 days to process.
Note: If you used an eCheck or Instant Transfer to fund the payment, the funds are returned to your PayPal balance.