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Another insurance headache!

I just used Auctivia for the first time. My item sold and I printed my paypal receipt and shipped the item. Later I get a message from Auctivia saying the customer bought their insurance which I didn't even realized was being offered to my customer. So now I'm told that I have to pay for the insurance of $1.40. I finally figured out where I was supposed to go to for paying the $1.40 and then I find out that they only accept $5.00 increments. This is ridiculous. I only use E-bay once or twice a year and now I'm supposed to pay over 3 times what the insurance actually cost and hope someone in the future buys their insurance again so I can be credited.

I've now been told by customer support that they can drop the insurance but I'm afraid of looking like I ripped off my customer by not following through with the insurance and not putting it on my Paypal receipt.

Any suggestions on how I should handle this? The item was shipped UPS so it didn't need the insurance to begin with.

Thanks
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