Target.com Beware of return policies Internet

I just purchased an item through Target.com using Paypal on my Paypal Mastercard. When I tried to return the item, with all the appropriate paperwork in hand, they refused to issue me anything other than a giftcard. I repeatedly asked them to issue me a credit to my paypal credit card which it was purchased on, or at the very least give me cash so I could pay my bill. I want to know how I am supposed to pay my bill since I purchased this item else where.  They informed me repeatedly that this was their "policy" and that they couldn't help me. I will never shop Target again. I understand when you don't have a receipt for an item, but when you have a legitimate receipt, how can they not refund it to the credit card it was purchased on. It was also returned well within their timeframe.