I think you're giving the seller too much credit for being a "good guy". First, paypal fees are less than 3%, but you're being with held over 9%...that's not paypal.
I accept payments through paypal and only once since this new policy have I issued a refund. The payment was for $2500. The money came in, paypal withheld $70+ and the rest went into my balance. When I refunded the $2500...the full $2500 came out of my balance and paypal kept the fee of $70+....so I paid the paypal fee to refund the money. If he accepted payment for an order he can't fulfill, then he should be the one paying the *less than* 3% fee.
