Fee for refunding money? What?!

aidensmommy
Contributor
Contributor

I just issued a refund on a $12 payment.  I had a $0 balance before receiving the payment.  After sending the refund I now have a negative balance of $0.30.  Why?  I don't understand why Im being charged to refund a payment.

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5 REPLIES 5

PayPal_Andy
Moderator
Moderator

aidensmommy-  Sorry for the trouble that's causing, it's certainly not the first time we've had customers concerned with this.  Towards the end of last year we started retaining the fixed portion of the fees on refunds (so the $.30).  Normally if you issue a refund and are even a penny short, our system is designed to go to your bank for the full amount and leave the balance alone.  As going to your bank because we've started keeping a portion of the fee would be a poor experience, we just take the account negative by $.30 until you receive another payment. 

 

Hope that at least answers why for you.

 

Andy

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sooted
New Community Member

I think she is asking WHY there is even a fee to refund the money? Makes no sense to charge a fee to issue a refund.

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profdata
Frequent Contributor
Frequent Contributor

There is no fee to refund a payment.

 

Just that paypal now keeps the 30 cent part of the original transaction. 

 

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Nicholas2239
Contributor
Contributor

*rolls eyes*

 

It's still a 30 cent loss for refunding a payment. If you don't want to call it a fee, fine, but it's the does the same result.

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davira_freidl
New Community Member

This just happened to me also, 3 days ago.  A customer purchased a crochet pattern from my etsy shop, then emailed me to say she made a mistake because she thought she was buying a completed crocheted item.  She wanted to know if I'd mail her the completed item for the price she already paid for the pattern.  Since there's no way I could ever sell a completed item for $3.25 AND ship it for free, I refunded her payment.  Paypal kept 30 cents of the 39 cent transaction fee and left me with a negative 30 cent balance. 

 

I emailed through the system, and though I got a message telling me someone would get back to me within 24 hours, it's been 3 days and no response.  So I called instead and after spending an inordinate amount of time going around and around with an automated system, I was transferred to someone who had a very thick Slavic accent.  I couldn't understand anything he said.  So I asked if he'd transfer me to someone who speaks English as their first language and he gave the phone to a co-worker, who had a very thick Asian accent that I couldn't understand.   After we all talked to each other without being understood, one of them finally said something I did understand: "Phone number for Paypal in USA".  Yay!  I copied it down and quickly called, but it turned out to be the same automated system that finally connected me with another person in the Phillipines, who I could understand even less than the first 2 people.

 

Is Paypal trying to alienate its American customers?  Why is Paypal keeping a portion of a payment that is being refunded to the person who sent it?  If I am not able to keep the payment, why is Paypal keeping the fee?  And why is it so hard to get a response to an email and to speak with someone in the US who speaks English as their first language?

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