Symptoms
In PayPal it is possible to refund the payments even when the billing agreement has been canceled, only E-transaction ID is to be provided. PBA does not support the operation, attempt to refund such payment fails with:
"Payment Method is Disabled. It can not be used for Payments now. "
Cause
PBA does not support it, because it checks possibility to use a payment tool, thе result is based on the payment tool status. The feature request with id #PBA-57715 has been submitted to support described scenario.