That's exactly what's happening. The developer actually loses 30% of the purchase price due to the refund (they are now 30% in the hole instead of break even).

That's exactly what's happening. The developer actually loses 30% of the purchase price due to the refund (they are now 30% in the hole instead of break even). Frankly from my point of view this is criminal. We kept payments for our product outside the app for years, and now Apple closes that ability too, by forcing any app that accepts payments of any kind to also accept Apple Pay. We've had to basically hide the ability to find it in the app so that people will go to the website first. Apple seriously needs to be regulated.