At this point I'm just asking for a button in the seller UI. If all it does for now is create a support ticket with the Payment ID pasted in, that'd still seem like an improvement to me.
Can you clarify what laws you're referring to? I've never heard of that and it sounds like something I should read up on.
As far as I know neither Stripe nor PayPal charge any kind of additional fee for refunding a payment. They don't refund the original processing fee, but personally I'd fine with having that deducted from my earnings if it meant the refund process was more streamlined. And I know fraud is a big issue, but for those of us that have sold hundreds or thousands of copies on here (and paid Itch their cut) I feel like we deserve some amount of goodwill. If it's rate-limited and only applies to payments that haven't paid out yet it seems like it'd be fairly safe, although I'm sure there are aspects of this I'm not aware of. I don't really care how they want to handle it internally, I just wish refunds were easier to initiate and happened faster.