Have heard that Paypal have changed one of their screens ...
I'm told there were two places where you could issue a refund on a Paypal payment from the payment detail screen....
One near the top, is still there and simply says "Issue a refund"
The one near the bottom with the same link has been changed. It now reads:
Refund:
To refund this payment in part or in full, for any reason, please use the Send Money
tab. The Refund Payment option is available for 60 days after a payment was sent.
The difference...?
"Issue a refund" returns the payment and fees in full.
"Send Money" is a separate transaction, and if you don't do it as a 'personal' transaction, comes with it's own additional fees - including fees the buyer pays to receive. Even if it is done as a personal transaction, Paypal still keeps the fees paid by the seller for the original payment.
This has an obvious intent to increase revenue by sellers refunding by the 'Send Money' option..... BUT how many buyers are going to scream when they don't get every cent back in their pocket?!!!
So ... make sure you find and use the Issue a Refund link!