Refund of PayPal Buy Now does not demote user

I’m testing out the functionality of my site, and have created a $0.05 Buy Now PayPal button, for 1 year access. When I use another browser (not logged in as admin), and click the PayPal button, I’m directed to PayPal site and choose to use a credit card. Everything goes fine, PayPal accepts the amount and lo-and-behold S2Member registers the user.

But then, I want to test a case where the user wants a refund, so I login to PayPal as Administrator, and choose the transaction just executed and issue a refund of the $0.05. PayPal successfully refunds it, and the user gets an email from PayPal saying they received the refund. The trouble is, S2Member doesn’t get the memo, and doesn’t demote the user!

I turned on logging for this, and in the PayPal log file there’s a bunch of stuff about creating the user, but then there’s nothing about the refund or about demotion. It wasn’t that it tried and failed, but rather that it didn’t even try, so S2Member isn’t getting the memo. That’s curious because it did get the memo about the creation of the user.

Here are my settings for Automatic EOT Behavior:

Anyway, if someone has some insights into why this is failing, please share! Thank-you.

You set only chargeback to cause a demotion according to your screenshot, you did a refund however.

However this system is not correctly working, because it demotes once a claim is initiated, and not once the chargeback is approved

Yes, that was it! I guess I don’t know what a “chargeback” is, but when I set it to trigger EOT on a refund, rather than chargeback, then it functioned as expected.
Thank-you for picking up on that so quickly, Felix!