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Yes, it is correct, you’re not entitled to return postage in the dispute. This is in the buyer protection terms. Only seller can offer that and follow through with it. But doing so can lead to another issue for you...if the seller paid you for return postage via PayPal goods and services which includes dispute rights, the seller can dispute you for the postage back if tracking doesn’t show delivery.
PayPal cannot refund more than the original amount paid from within the dispute. You can sign up and apply for reimbursement after mailing the return if eligible. Google “PayPal return shipping”.