<<<<So since they will NOT give me the money, I asked them to reverse the money and return it to the sender. Sorry, they can't do that. Why? Because it's in my account.>>>
Only you can return the money. If you don't have an account to sign into, you can't return it. HOWEVER, if your friend will go into THEIR account, they will see that the money is sitting there as UNCLAIMED and all they have to do is cancel the transaction. If they don't cancel the transaction, the money will revert to their account in 30 days automatically.
There is no way for Paypal to transfer the money to you if you don't give them either a credit card or your bank account information.
The reason they are telling you there will be a fee is that the limit of credit card payments for personal accounts to receive per month is $100.00. If your friend wants to send you the money without there being a fee, they can do so by sending you money directly from their Paypal balance OR via an Echeck (money directly from their bank account). If they are sending you the money from a credit card, then the limit applies. This is because the credit card companies are charging Paypal for every transaction of this type.
In any case, it is on your friend's head since they tried to send money to someone who doesn't have a valid account set up. All they have to do is go back into their own account and cancel the transaction. The money will immediately revert to their account.
Annie