Cancellation refund and ebay funds issue

se2020

I had an ebay balance of £200 yesterday morning.
Sold an item for £175.
The buyer opened a cancellation request within a few minutes of purchasing.
I hadn't packed or posted the item so I accepted the request and refunded the full amount.

I've just noticed my ebay balance has dropped to £25 due to the £175 refund I sent to the buyer. 
The buyers funds for the purchase are showing available on the 19th of July.

I can't believe ebay expect me to provide the funds for a refund when they have not even released me the funds for a sale that never even really happened?

Any one else experiencing this?

What if the sale was for more than my available balance?
Would they be taking it out of my bank account for a 2 week loan?

apricotcrush

Yes this happened to me.  Buyer purchased and paid for an item then immediately cancelled.  EBay refunded them, not from the amount they were holding but from my eBay balance.  I then received the amount 48 hours later.  Fortunately there were sufficient funds in my eBay balance but as you say, if there hadn’t been, would they have taken it from my bank account?  In an extreme case, this could lead to direct debits not being paid and credit rating being compromised. 

the_lunatic_is_in_my_head

Whilst eBay has said the 2 week hold is to strengthen buyer protection (which is nonsense as eBay already cover the refund regardless of whether the seller has the money or not), these holds are to protect eBay, i.e there is less chance of the money having to come out of eBay's pocket, so whilst it isn't "fair" IMO, it isn't surprising. 

se2020 said:

What if the sale was for more than my available balance?
Would they be taking it out of my bank account for a 2 week loan?

Yes probably, if your balance is negative they will charge your payment method at some point but I'm not sure on the timescales.