I usually see refunds on my PayPal pretty quickly (using the refund option on the BO order screen)... as in a few minutes. I have a business account, unsure if that makes any difference or not. It could also be that THEIR method of paying PayPal takes longer to process, e.g., they tied into the checking account vs. a credit card, so that is why it is taking longer to show up. :-)
Do you have a business PP account, or a personal? If it's a personal one, the refund doesn't happen from BO when you do a refund, you will have to do that manually in PP.
The automatic refund will also fail if you don't have a large enough balance in the currency you're trying to refund, even if your overall balance is sufficient.
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If it's a personal one, the refund doesn't happen from BO when you do a refund, you will have to do that manually in PP.