This just in from Paypal :
When a merchant processes a refund to one of their customers, PayPal will now retain all fees paid by the merchant when the merchant received the original payment from that customer.
For example, the $100 AUD you received, $2.90 AUD total fee from the 2.6%+0.30 cents AUD transaction fee will be deducted still by PayPal. To make it short, the buyer will get the full amount they paid for, you will lose the amount equal to the transaction fee if the transaction with the buyer is unsuccessful.
I hope this answer your question. Please let me know if you need further clarification in regards to our updated policy.
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PayPal Australia Pty Limited.
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Thank you for the response.
I am concerned that the policy is not very clear and I did answer my specific questions.
Let me give you an example:
I am a seller on ebay AU.
Ebay require mandatory acceptance of paypal as a payment system.
If I sell an item on ebay for $100 to a buyer….
The buyer pays $100 for it by paypal, and then changes their mind….or fails or refuses to pick it up…
if I refund the buyer the purchase price of $100…what are the new charges/ fees that paypal now demand?