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Thank you for answering, btw does anyone have any idea how long it takes to issue the refund or is that unknown? I was wondering if the person will get their money back instantly or if it takes a while.
Declined digital gift cards will be refunded to the payment method used to buy it, so to the bank in this case.
BUT, you CANT buy Digital Gift Cards with Steam Wallet funds, only with outside payment methods.
So this was the correct way to send a digital gift card, wallet funds do NOT work.