Why is this case showing as "Closed"? This issue has not been resolved and I called customer support and spoke with them at length about this issue. I was hoping they could walk me through my merchant setup since you are claiming that may be our issue. Unfortunately, they were unable to help and told me to contact PayPal, which I have and they say that it's a QBO issue... None of the refunds processed through PayPal are showing up in my QBO bank feed. This is adding hours of work since I have been having to manually enter every refund. 
Please escalate this issue again because it is not resolved and if it doesn't get resolved by the end of the year, we will likely switch providers to Sage or Xero as this is a big issue for us!