A small Brunswick cafe forced to refund tickets for a Persian food night because PayPal feared the event was in breach of decades-old economic sanctions against Iran has won a late reprieve.

The Persian Soiree at the Moroccan Deli-cacy on Lygon Street will mark the launch of an issue of Garland magazine that has been dedicated to the return of Iranian culture and arts as sanctions on the country slowly lift.

The Moroccan Deli-cacy, home to the 'Speed date a Muslim' initiative, has been caught up in PayPal blocking ticket sales to its latest event. Credit:Penny Stephens

But those very sanctions attracted the heavy hand of online payments system PayPal, which last week not only blocked sales but also refunded those who had bought tickets to the November 20 event.

Garland editor Kevin Murray said PayPal began refunding payments on Thursday.