A .30 Cent Refund Fee ????

AgencyCredit
Contributor
Contributor

We've tried to give PayPal a chance but enough is enough.  We process over $7000 monthly via Virtual Terminal.  We process about 3 refunds a year.  We just initiated a refund and PayPal has charged us .30 cents.  Why?  We received no notification of a new fee.  There is also no justification for it, as it's an entirely automated NACHA file-building process that requires no human intervention. 

 

We're done.  We recommend that as many of you as possible get off this sinking ship.    

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23 REPLIES 23

angel2009
Contributor
Contributor

Did you check the amount that was refunded to the buyer?? They were charged a fee ...they did not get the full amount i refunded them on my transaction today..

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sandypurins
Advisor
Advisor

@angel2009 wrote:

Did you check the amount that was refunded to the buyer?? They were charged a fee ...they did not get the full amount i refunded them on my transaction today..


The buyer is not charged a fee when the refund is sent using the "Issue Refund" link.

 

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cjfranger
New Community Member

30 cent fee is bull

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shcc
Contributor
Contributor

Recently, a buyer made a purchase from my site using Paypal. I had to immediately refund the buyers money due to an unrelated issue. Now I have a negative balance (-$0.30) in Paypal, apparently because I was charged a transaction fee despite the fact that I refunded the buyers money in full. Why am I still responsible for paying the transaction fee if the buyers money was refunded?

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allergycheryl
Contributor
Contributor

If you did the refund through the original transaction (and not the send money function) then PayPal should have refunded the fees.  If you did it theough the send money function, you **bleep**ed yourself.

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toyman_in
New Community Member

This happened to me last night as well.  I had a buyer who bought an item on ebay using buy it now back on December 28th.  He never paid, so I went through the proper channels of opening and closing an unpaid item case a couple of weeks ago.  Then last night, after I had already relisted and sold the item, I get a paypal payment from the guy (not really sure how that happened since the case had been closed) for his original purchase.  Since I no longer had the item, I sent him a full refund within an hour of his payment.  Original paypal fees amount was .62.  Credited paypal fees amount .32.  Paypal charged me .30 for this and I cannot figure out why.  I looked through their fees page and nowhere does it specify that if you give a full refund, that paypal will keep a small amount for their troubles.  It's not really like it is that big of a deal, but I am a little concerned due to just the principle of it all.

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AnnJa6
New Community Member

This happened to me this week as well. Someone in Israel bid on and won a "local pick up" item (I'm in the US). Then the buyer proceeded to send me a payment (without an invoice), calculating their own shipping cost of a mere $0.06. I contacted the buyer and refunded 100% of the money through the "refund" process. It seems as though PayPal refunded it again or something. I have 2 refunds for the same amount on my log and now Paypal wants me to square up. Prior to issuing the refund, the information stated the fees would be refunded. I'm not going to pay for some idiot who can't read a simple posting.

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sandypurins
Advisor
Advisor

Effective August 10, 2010, PayPal stopped refunding the 30 cents portion of the payment receiving fee. The change was announced in the Policy Updates section of PayPal's website.  Here's the text and link...

Amendment to the PayPal User Agreement
Effective Date: Aug 10, 2010

Refund Fee. Section 8.5 (Additional Fees) is amended to add a new refund fee. If you refund a Purchase Payment, we will retain the Fixed Fee portion of the Purchase Payment Fee. The buyer’s Account will be credited with the full Purchase Payment amount and the Fixed Fee portion of the Purchase Payment Fee will be deducted from your Account in addition to the amount of the refunded payment. The Fixed Fee will depend on the currency of the Purchase Payment and is listed in 8.4(c).

https://cms.paypal.com/us/cgi-bin/?&cmd=_render-content&content_ID=ua/archive_policies_full&locale.x...

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DougOrleans
Contributor
Contributor

The same thing just happened to me.  Someone paid me $5, but it charged me $0.45, which isn't worth it (he could easily just pay me in person), so I immediately refunded it, but he only got $4.85 back and I ended up with -$0.30.  All I want is to simply undo the $5 transaction, which I never agreed to in the first place.

 

I really hope this is just a temporary bug, because otherwise I am going to delete my PayPal account!  I have been with them since the beginning, over ten years ago, and it's always been a nice simple way to "pay" your "pal" without any overhead.  If that's no longer true, then I have no more use for the site.

 

--Doug Orleans

 

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