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Example: I refund back $5.00 to another person. Do they get a full $5.00 back, or will they get partial because of fees?
When a buyer pays you then you are charged 2.9% + 30 cents ( I think ) in your country.
If you issue a refund then you issue the FULL amount but as part of this 'full refund' Paypal contributes the 2.9% of the fee which they let you have back again as part of your refund...........the buyer gets a full refund and you only lose 30 cents as a fee for Paypal processing your buyers initial payment and the refund for you.