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Anyone out there with the same problem?

Hello and welcome everyone, I installed new Presta shop 4.x version and upgraded it to the latest version 1.5.6.1. and also installed latest PayPal Europe 3.6.1 version module. Currently the shop is linked to the PayPal sandbox accounts for testing and the test mode in enabled in the PayPal module. My problem is when the credit slip is created the money is not refunded back to the customer. Can someone explain how this should work? I also tried normal refund with Merchandise return enabled and still the same occurred. PayPal module did not send money back to the customer. Please advice how to check this out and fix. Adam