Even if you used your card direct the seller will have received it via their Paypal account (must be one of the few who has not had to switch to managed payments yet, but that's another story). If you paid with card, with or without Paypal, the refund will return to source. If you used your debit card the money will return to your bank account in about 7 days. If credit card takes up to 30 days to return to card.
