Have paid but item not available for sale - What to do?

I paid for an item and the seller says it is not available - Can I cancel the payment? How can you do that?
(Paid with debit card via paypal)

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If the seller has told you it is not avialable then they should initiate the refund.  If they do not then after the due delivery date you can open a not received case.

 

If it was ebay who told you, and suggested you look at other items, then this could be the standard marketing message sent to all watchers when an item sells.  It even gets sent to the person who bought the item.  It does not mean the item is unavailable to the person who bought it. In which case the seller wll be blissfully ignorant of the fact that ebay is messing up their sale and you should get the item as normal.