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MyStoreRewards - paypal fees

First customer to sign up for the MyStoreRewards deal. I go to set up the first refund and I am informed that Paypal is going to charge me a fee to give someone money back? I am a small time seller - and Paypal already charged me to receive this person's entire payment and then they're going to charge me again to give part of it back by enrolling in their "Mass Payment" program? Am I understanding this wrong? Is there a way around it?
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