Why are you trying to refund customers through PayPal...? You should be refunding through Ebay, either through a case or return request opened by the buyer, or by cancelling the transaction.
When a buyer opens an Ebay case or return request, the PayPal payment is automatically put on hold, so you can't refund the transaction from PayPal anyway. Is that what you mean by your account being 'limited'...? If so, just do as explained above, ie. refund via Ebay. That action will release the PayPal payment back to the buyer.
PayPal no longer refund their processing fees, no matter where you action the refund; but if you refund through an open Ebay case or return request, or are cancelling because the buyer has requested it, the Ebay selling fee will be credited back to your Ebay account. You certainly won't get the Ebay selling fee credited back to you if you refund from your PayPal account.
You don't seem to have much idea how Ebay works. Everything you need to know about selling on Ebay is in the Seller Centre (link at foot of any page).That includes the difference between a private and a business seller. You're selling brand new items, so must upgrade your account from private to business - not only an Ebay requirement, but the law. Note that how much or how you little you sell or make is totally irrelevant, so upgrade asap, before you find yourself in trouble with Ebay and Trading Standards. You should also visit the government's website, to learn all about online trading and consumer law.
@firstchoicedvdstores
