I've just come across a curious problem with paypal that I didn't know existed.

I've just completed a zen-cart store and was doing a test purchase with my credit card using paypal, this worked fine, no problem.

I then got the store owner to refund the transaction, but when I went to paypal to accept the refund, paypal said I had to upgrade my account to accept the refund back to my credit card.

Is this correct?

I could see this causing some unhappy customers, if they pay by credit card they don't want the hassle of creating a paypal account just to get thier money back.

Have I missed something or has it always been this way?