Paypal holding on to money refunded by Apple. My AppleID compromised.

[Wirelessroamer]

During November I trialled an App on my iPhone.

The payment route was PayPal to Apple To the App Vendor.

At the end of the trial I cancelled the subscription.

The vendor accepted the cancellation and refunded the £39.99 to Apple.

Apple refunded the fee to Paypal but it was not passed back to me.

I tried to get the refund through the Paypal disputes mechanism.

They refused it and I have appealed twice more.

Despite me uploading evidence of the vendor and Apple re-payments Paypal still refuse to give me my money back.

Further to this I am being told by Apple that my Paypal account is not acceptable for Apple ID account payments.

Does anybody know how to get Paypal to look at clear evidence or do I have to go to the regulator?

Apple refunded me; paypal isnt showing it 

Verify PayPal for AppleID 

[Wirelessroamer]

This is one of the screen capture from my Apple account. One of the Proofs of payment I submitted to Paypal clearly showing it was refunded to them. Apple say it is with Paypal.

Refund from MyFitnessPal is clearly shown with a record number.

I also uploaded a long log of the conversation I had with the App vendor saying that they had honoured the refund. I can't access the App account as it was deleted when I didn't take the Premium offer.

Regular legitimate calls from my Apple ID for other App renewals are now being blocked as my AppleID doesn't recognise Paypal as a legitimate payment method.

What more should I do?