Seller from US refunded $1000, but I received £42 less than what I paid. Help!

[pinups]

I paid a seller $1000 last week, for which paypal charged me £845.  Now the seller has refunded me the money, but I only got £803 back.

Is there a way to get back what I paid which is £845?  This seems very unfair.

And is there a way for the seller to refund me in dollars and for paypal to keep the money in dollars so it doesn't automatically switch back to pounds?  

Thank you for your advice.

[sharpiemarker]

@pinups 

Depending on your country, as policies may differ but PayPal has recently started to only refund using the same rate if the refund is processed on the same day payment was sent, otherwise, the rate you get a refund with is at the going rate on the refund date and may be less favorable than originally paid. Also PayPal no longer refunds part of the PayPal fee and the seller has to make up the entire fee out of pocket. Both parties lose out.

The seller can send you a refund as a payment in USD and you can accept the money as USD by creating a USD currency balance in your PayPal balance but that leaves the original transaction open for dispute even if the seller refunded, by unscrupulous buyers who want to try and double dip, complicating things. And unscrupulous sellers who send a refund as a payment can dispute the funds back if sent as goods and services as item not received. So it is best if the refund was issued from within the original transaction.

[pinups]

So is this no longer valid?

""14.6 When you send a payment in which you perform a currency conversion using PayPal (i.e. converting the currency in which you fund your payment into the currency to be received by the recipient) and later there is a refund, return or Reversal, we will generally reverse the currency conversion and complete the refund, return or Reversal in your funding currency using the exchange rate which prevailed on the date of the original transaction."

Had I known I would not have accepted the refund (long story)!  Perhaps I can make a complaint to Paypal and see if they will use the original exchange rate so that I get all my money back?  I am a good customer of theirs and have a business account.  I feel totally cheated out of this money, as in the past I have got a full refund from foreign refunds.

[pinups]

ps: I'm in the UK.

[Whistlerx]

I had a similar issue, although the difference was substantially less, and spent 45 minutes on the phone talking to the agent with little success. No matter how I explained my POV I received the same response - read the Legal ... and yes it does state that beyond 1 day the refund will be made at the current exchange rate ... not particularly helpful. This left a bad taste in my mouth ... oh well, onwards and upwards.