By the way, my dear genius, keep in mind...when you refund. You refund, that is pretty much it. There is "no more" to "fraud" the "process". It was designed a specific way for a specific means. If you alter that to avoid account closure that is your business. So far you don't even seem to be denying it.

Now if you abuse the system to keep from being "flagged", then yes, you open yourself to claims and "double taps". Try explaining to Paypal why the next customer is asking for a refund on their transaction after you claim you have already given them their money.

Do you actually think the 9 to 5 people at Paypal will actually give a damn that you used some exterior method to compensate your customer? I don't think they will. They will look at their screen like a robot plugged in and say something akin to "Sir, I see on my screen that this transaction has not yet been refunded. I am therefore going to close the claim and issue their refund. Thank you."

Don't expect Paypal to go the extra mile. It won't happen. Reasoning with them is futile. (I hope someone posts that Star Trek Borg cube after this)