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Erm... Paypal only send payment if you tell them to.
But because you forgot to look after your own paypal account is a good example of when hosts should send money back.
I normally go ahead and add some funds to my account. This way I don't have to care about the payment of the bills as they will be payed from the fund that was added before. However, if I cancel the Service, I have the right to get the unused funds back. Legally, they are just a loan without an interest rate.
No. You can get store credit or a refund. Both are OK.
At least in physical stores, you have the right to get your money back and that means money, not any kind of store credit. For example if you buy clothes and you end returning some of them.
Same with online transactions, you can get your money back (including shipping costs to you, if applicable) during the next 15 days after the purchase.
Actually, that is not true. In the Netherlands, it is perfectly fine for a store to give a credit coupon (at least, in most cases). The story is a bit different if a malfunctioning product has been sold - in which case a replacement is acceptable, and if that cannot be provided, you can demand money back.
This depends on the legislation in a particular country. To my knowledge there are no EU-wide regulations on this.
In Spain, consumer organizations always say that on TV and the likes, but honestly I don't know about the legal basis.
There are recent EU-wide regulations about that, but you have only a week and not two as I thought:
http://europa.eu/youreurope/citizens/shopping/online-shopping/returning-unwanted-goods/index_en.htm
Seems anti-consumer in some situations, say a second hand store. Is there no exception for a merchant to declare all sales final for some things? Without that option, the consumer drives up costs, and costs are always passed on, meaning in the end, you pay more.
@miTgiB some Chinese stores here declare that the sales are final, but I have no idea of how that stands legally.
the Chinese make an Olympic sport of haggling, they may do it to troll
This is what, for example, H&M does. They give credit for products that are returned from an internet purchase for those bought in the wrong size. If the product is really broken, you can get your money back (given that you have the receipt). They wouldn't do it if there would be no legal basis for it.