UK members. Has anyone been paid by...

No, it sounds very puzzling to me - more like a bank transfer thing than a Paypal transaction. Sorry not to be more helpful, perhaps someone else will be able to help us both get more informed!
 
Where abouts in Ireland is she? If she's near the border, then it would be easiest for her to go into a bank in the North, write out a paying- in slip with your bank account number, name and sort code, and pay direct into your bank account. That way she could change the euro into sterling at the bank, and pay sterling direct into your bank account, and then they'd be no bother for you with fees/currency exchange.

If she's miles away though, then I guess ignore the above!!

Just a thought... (I live in the South, but work in the North)

K