No refund/refund issue with Microsoft Store online - PayPal dispute advice needed please!

The PayPal is not the issue now. The fact that Microsoft is not issuing me a refund, after I returned the Xbox is the issue. If Microsoft does not issue the refund, I will contact PayPal to dispute the charge. I hope it does not come to that.

Spent an hour on the phone with Microsoft support, my bank and PayPal yesterday. Microsofts system shows that PayPal refunded the whole amount. PayPal confirmed that they put a HOLD on the full amount at the initiation of the dispute but only refunded the
$2.70 in tax and returned the rest to Microsoft when the dispute was closed.

Both said I'm SOL and wont be getting my money back or the games restored to my account.

Microsoft's only suggestion was to dispute the charge on my credit card, but PayPal withdrew from my bank account. And PayPal will not reopen the closed disputes to refund the full amount.

So, for Christmas this year, Microsoft got $45 and I lost $45, got the middle finger, and learned to only ever buy disc games used from GameStop

Microsoft Store said they could not help me. They claim they refunded the money to my "credit card". PayPal says Microsoft never did refund the money. PayPal also said there was a mix up with the BillMeLater and my bank account. So I was told that PayPal
took the money from the wrong account (after I chose another account at PayPal payment point), and Microsoft refunded the money to the wrong person's credit card. Microsoft apparently made a mistake in refunding the money, as they refunded the wrong amount
and sent it to someone else's credit card. I disputed the monies taken with PayPal and my bank. Hopefully that will solve the issue.

DevGod.... I did ask the Microsoft Store for a conformation number, 13 times. I also spoke with a Supervisor 5 times. Was told that they could not issue a refund, as they had already done so to my "credit card". When I told them I used PayPal, they told
me they had refunded the money to a credit card and not PayPal. Finally they told me they could not override the system to give me my refund, as the system was showing I was already refunded. I was calm the entire time, and did ask for a confirmation of the
transaction (first time and everytime I called).

Yep, there were some messages from Singer, but they apparently got removed for trolling.

For those, like Karch, that have been helpful, I thank you.

Your only recourse is through paypal since you stated before "Microsofts system shows that PayPal refunded the whole amount.". Paypal just sees one transaction total. And paypal can only dispute the transaction, not a part of it. When Paypal disputed the
transaction, that was a dispute on the transaction as a whole. Paypal got all of the money back and gave you 2.70. Microsoft can't do anything for you when paypal has your money

The only reason that it would be saying that you need to purchase the games when going into the store is if the account you are signed into does not have the license for the games.

Couple reasons this could happen.

1. They were never bought on that particular account. Check order history by going to account.microsoft.com

2. They were refunded. You said that you disputed it through PayPal it is possible once MS got that dispute they took the licenses away from you for the games in the process of refunding them through PayPal. You can also check the status of the order at
the account.microsoft.com website if it is showing as refunded then that is what the problem is. If it is showing no where on the account that you are signed into then the purchase was not made on that account.