I cannot refund a buyer

[dannyscollectio]

Hi currently I am trying to refund a buyer because they bought something on grailed (a platform similar to eBay) and I go to refund him but I can't because it says I have insufficient funds in my account which is not true because I have not touched that money 

[sharpiemarker]

@dannyscollectio 

Is the payment on hold by PayPal?

OH, you know what, maybe you don't have enough because PayPal no longer refunds fees so the difference in PayPal fees comes out of your account extra.

So let's say for instance, the buyer paid $100 and the PayPal fee is let's say $5 for receiving the money. When you refund, PayPal does not refund the $5 so $95 is refunded by PayPal but you have to fork out that $5 to make up the $100. See my meaning? Therefore if you do not have that $5 in your PayPal account, PayPal can't refund but they should be able to deduct it from your PayPal balance or linked bank account so its weird the system is say its insufficient otherwise. Unless you have no linked funding sources on your PayPal wallet to take the difference from.