Paypal announced changes to their Terms of Service effective May 7, 2019. Among the changes is the fact that Paypal will no longer refund service fees if you refund all or a portion of a charge. Those of you using Paypal for rental payments may want to consider alternative processors if you deal with many refunds. Especially if you have used them for security deposits....that's $15 for every $500 deposit you refund.
Doesn't surprise me, but I am not sure that a legitimate business should be largely dependent on PayPal. I have heard good and bad about people using them for business. I heard HomeAway (sorry, verbo :) may be allowing owners to get away from the dreaded yapstone/vacationrentalpayments, but not sure yet how they handle this deposit situation yet.
I am leaning towards Lynnebrook group. But honestly not sure if other processors do the same thing to refunds like you say. I think there is a lot of value in having someone who handles a lot of vacation rental activity (besides yapstone).
Of course, Airbnb there isn't really a deposit. Maybe the above makes them more valuable in that way.