We authorized to purchase a {$49.00} photo package for my daughters during vacation at XXXX XXXX XXXX in XX/XX/2014. When the bill came, a {$52.00} charge was tagged to an outfit name unknown to me with a XXXX XXXX XXXX address. So we asked XXXX XXXX to investigate ( not charge reversal ) the origin of this charge. We later found the outfit name XXXX tied to this photographer in email and called XXXX to close this investigation within a few days. However the merchant emailed in XX/XX/XXXX and provided Paypal transaction number XXXX as reference. The merchant filed an appeal in XX/XX/XXXX due to my inquiry into this Paypal charge. Paypal said this merchant had LOST his case and {$52.00} payment was reversed with {$20.00} charge-back fees to his account. I decided to pay the merchant again and waited for the {$52.00} refund from Paypal, but the refund never came. I called the merchant in XX/XX/XXXX and Paypal told him a refund will be made within 60 days to my account. When the refund does not happen in XX/XX/XXXX, I called the merchant and then Paypal concerning this transaction. The XXXX time Paypal can not even find the transaction. XXXX time Paypal found the transaction XXXX but could not determine if a refund was made. XXXX time I called with XXXX XXXX on the same line, Paypal confirmed there was no refund but now claimed {$52.00} was transferred to the merchant in XX/XX/XXXX and I should go after him for refund instead. The fourth time I called Paypal, they confirmed XXXX more time with XXXX there was no refund and the agent also discovered the {$20.00} charge-back fees to this merchant. However this agent was confused what else can be done and transferred me to the dispute department. Paypal agent in the dispute department was not interested in discovering any Paypal accounting error but instead told me I have no case to open a dispute with this merchant. I did not call to open a dispute with this merchant, I called to ask Paypal for the refund concerning this transaction XXXX with XXXX. However this Paypal agent is not interested in discovering internal account error or this is not in his job description. He spent his time explaining to me why I am out of luck because the merchant actually WON in his appeal. Each time I or this merchant called Paypal, it is a new investigation to Paypal because its system is not capable of issuing a case number to record my inquiry and evidence discovered so far. If the merchant really lied to get {$52.00} from me and Paypal is so confident of their accounting system, it should be simple to offer a case number to tie my no-refund discovery and then let this merchant send in his documentation that {$52.00} was in fact taken from him early this year. Paypal can not do that and they also can not explain why {$20.00} was charged to this merchant but my money was still with him and not lost in the Paypal system. I also found it unlikely the merchant lied because Paypal confirmed {$20.00} charge-back fees to this merchant. Paypal can not explain how a merchant can lose an appeal but still got {$20.00} charge for my inquiry. There should be no charge if a merchant was not at fault. All these pointed to Paypal accounting error but they was not interested in an investigation.