Hmmm, I thought I had explained what happened pretty well in my original post. Let me try again and see were it takes us.
- Buyer pays the amount of $312
- I receive $297.81 (due to Paypal fees because buyer used Goods and Services, which I believe is the only option for International accounts)
- I refund buyer $297.81
- Buyer wants additional $14.19
Hypothetical - If I had $2000 in my account or I had $297.81 in my account, I would be out $14.19 either way if I had returned the total of $312 to the buyer.
Paypal takes the fees upfront. I don't pay them at the end of the month or weekly. They are taken out of the initial transaction.
If during the PayPal refund screen I had sent back a refund of $312 it would have taken the refund from my bank account because the available balance of $297.81 would have not covered the full amount of $312. Leaving $297.81 in my Paypal account available balance but removing $312 from my bank account. Again, leaving me to cover the cost of the $14.19 PayPal fee.
You are absolutely correct that I considered this to be a full refund. I am not willing to be out any money due to the buyers neglect and deception.
Maybe these articles I found can explain it better than I can.
https://www.eseller365.com/paypal-will-no-longer-refund-transaction-fees-on-refunds/
https://www.theverge.com/2019/9/20/20876570/paypal-refund-fee-policy-change-sellers-controversy
I don't know if this helps explain any better. If you have anymore questions please let me know and I will try my best to answer.