From 5th March 2020, PayPal will no longer return the transaction fees to the seller when a refund is issued.
Updates to the User Agreement
Effective Date: March 5, 20202. Fees – Commercial Transaction Refunds
Section A3.4 (Commercial Transaction Refunds) of Schedule 1 (Table of Fees) is amended to clarify that, if you carry out a refund of a Commercial Transaction payment, all of the fees originally paid by you to receive the payment will not be returned to you. Section A3.4 (Commercial Transaction Refunds) of Schedule 1 (Table of Fees) (presented in context with the column headings) now reads as follows (with amendments shown underlined):
This change does not take effect for users registered with PayPal as residents of Ireland until further immediate notice of the change, to be published by PayPal on the Policy Updates page (accessible via the Legal footer on most PayPal site pages) on or after March 5, 2020
(as PayPal may determine in its sole discretion)