Phileas Fogg,
I think its important to remind you that you need to consider things within context and not take things out of context, like you are.
Paypal may well have sent you an email saying "The refund will go to the card you paid with".
But the problem is ...
(a) You, as a Paypal customer, agreed to terms and conditions when opening an account
(b) In the run-up to you receiving said email, you probably filled out some forms or whatnot, and attached to that were no doubt more terms and conditions for you to accept.
I suggest you go get legal advice if you are uncertain, PPRuNe is not the place for legal advice.