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You cancel transaction at your bank.
You refund game at Valve.
Valve refunds right away.
You're now $7 bucks richer.
Therefor, Valve waits until your money actually reaches their accounts before giving it back to you.
Actually no. They will just cancel the transaction if it is still pending.
What takes so long are the banks.
Up to 7 days.
Most wallet funds are refunded with in 24 hours after approval.