Hmm, I suppose it's theoretically possible to set up two separate paypal accounts, using different credit cards and e-mail addresses.

Then you could send payment from your Citi card to your own account, thus recovering the cash in full. In the mean time, you get miles.

Of course, I'm sure if the credit vendors catch you doing this, there may well be repercussions. Paypal probably wouldn't care, although I'd take a close look at the agreement for the service.