Cancellation - why is refund in $ when he paid £?

[prettylittlethings-jane]

Buyer in Belfast negotiated a price of £279.00 including postage for a collectable, and paid immediately, but within 10 minutes he had submitted a cancellation because he had changed his mind. Fair enough. The cash is in my Paypal account, the refund is now bizarrely in US dollars (he paid in sterling and lives in the UK). Because Paypal are keeping the £8.79 fee, the refund is now an e-cheque which won't clear until 2 Sept. He is going mad. I am so confused! Why do I have to pay a fee when he has purchased and cancelled on a whim? 

[fargvs]

Guess ... Check the buyers registration site by opening Feedback Profile page and clicking on their 'View listings/Items for sale' links to see the original Country of eBay registration in the left hand column under Seller information.

Although UK based, the buyer may have a USA registered .com account and has paid and then requested the cancellation through that US account ... hence might explain refund in $$s echeque.