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I issued a full refund back to my brother for $500.00 b/c Paypal charged me a $22.30 fee. Why did they not simply refund from the available balance and instead went to my bank and withdrew another $500 yet my available balance in PayPal is still only $477.70? I need to get refunded the paypal fee in full as i refunded the money! this is BS! and they dont even have a customer service line open!!! WTH!!!
You can't have read the policy updates a few months ago.
Paypal no longer refund the fee you were charged when your buyer paid as part of any refund you make.
So you need to have the total refund amount in your balance and if not then they will take from any bank account you have linked.
Paypal provide you with the service of processing your buyers payment for you and the refund and so charge you for that.