Yes, it's the way it was set up and it's always a crapshoot as to whether it works the way it's supposed to. I'm still undecided as to whether it's worth the effort.
But yes, it's there: I would advise everyone who has paid by Paypal to log in to it,
click "Profile" (top right),
click "My money"
and click "Update" next to "My preapproved payments". If there's anything set up there that you don't want, cancel it.
Refunds for money taken in error are no problem in any case.