I have an issue with a seller who wouldn't pick up the returned package from the post office. They finally did when I initiated a dispute. Then they sent me a message saying they could not refund my Paypal account with the dispute pending and asked me to withdraw the dispute. Since we had been communicating through the PayPal dispute, I didn't receive their message (my bad - I didn't check that mailbox). I escalated it to a claim. If a seller cannot refund the $ while a dispute is pending, then how can a dispute ever get resolved without a claim? If a person withdraws the dispute, they have no further recourse through PayPal, so that just doesn't make sense.