Unfortunately the way card networks work is that fees are charged for every successful transaction and not reversed when a transaction is refunded. Therefore, not refunding the original transaction fee has been standard industry practice at payment service providers for the last few years, both locally and internationally. This is because payment service providers cannot absorb the high costs of refunds made by their merchants.
If you find that you are processing large amounts of refunds, we’d recommend looking at alternatives like refunding with a voucher/gift card, or crediting a buyer’s account instead of processing a refund. If you are a high volume merchant and refunds are critical to the nature of your business (e.g. events), contact our sales team so we can work out a comprehensive solution for your business as part of the commercial agreement.