Hi WillieNilly Paypal will refund the postage to you. Go to the Activity Page on your account and select the item in dispute. When it opens you should see a heading on the left hand side toward the bottom that says Request a Shipping Refund. Select that and it will give instructions on what to do. Basically, you have to package the item, pay for postage, take a photo of the package showing the address it is going to and the postage price. Upload those photos and Paypal will refund in a few days. Sometimes it is hard to speak to someone at Paypal or send a message. I have worked it out finally. You need to go to the Message Centre, the easiest way to do this is put it in the help / search function. Put your Case ID in and ask your question. Initially it is a computerised reply and can be frustrating, but keep trying, ask to speak to an agent. You should get an email back from them in a day or so. Good luck. It worked for me.
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