Another consideration would be if he's using a credit card with some sort of Rewards Program to pay for the purchases, the card issuer may have different policies.
When you force a refund through Paypal for a return, if the buyer paid with a credit card, the funds are refunded to that card, not into the buyer's Paypal account. I can't imagine the card issuer would still give him rewards for charges that are refunded, but without knowing what card/program he has, we can't be sure.
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