Returned Payment

Not sure if this is the right platform for this question, plus the question may have been asked before. But here goes.
So, we received an Order and payment from a Croatian Buyer, and because we had experienced a lot of problems previously (not through Brick Owl but through other sites) with Croatian shipments, we decided to return the payment. We followed the instructions in PayPal to do so, which included sending an explanatory message to the Buyer. It appeared to have been successful from the PayPal screens, even though we didn't receive any confirmation e-mails of the action. And the Order is still showing in our Brick Owl Orders lists, and as 'Payment Received'. How do we remove it or clear it down?

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