PayPal for cancellation refunds

Hello, I am in the process of canceling my May vacation to Portugal due to Covid. I just canceled one of the tours I had booked. While they are ok refunding my payment, they said they are unable to process it back to my credit card at the moment. They are asking me to provide my PayPal to process it there. I don’t have a PayPal but I can create one. I am not sure why this process is easier for them instead of the CC and if it would be risky for me to use PayPal for this. I booked this tour recommended by others who had used them so they are not a fly by night operation. However, I get suspicious. Any thoughts on this would be appreciated.

Thank you in advance.

That seems strange. I would just say you have no PayPal and don’t want it.

I use PayPal a lot. I tried to do a transaction with my sister and for whatever reason they flagged it. They never did process the transaction and my sister ended up paying me with Venmo. If you get stuck in limbo like that with a Portuguese company, you might end up with a similar situation.

Call your credit card company.