I have been taking payments through paypal for years. They sent a letter about the refunds, about 1 year ago. What it amounts to is that if the seller issues a refund to the buyer paypal no longer refunds their part of the transaction. They used to. So if I sell something and want the customer to get a 100% refund I have to add the paypal amount. I will lose money by doing so. The seller you dealt with knows this too.
As Readonly said, that still doesn't explain the 9% "transaction fee" they skimmed. As others have said, I'm calling the credit card company's fraud department tomorrow, Maybe if I'm enough of a pain in their ass, maybe they will just credit me to go away, and then I'll just cancel my friggin account.
