Fee per transaction rate

[gourdguru]

I had a sale to a customer toward the end of September.  It put me at a lower fee per transaction rate.  The customer called me today and said she was returning the item because her husband ordered it and it isn't what she wanted. 

The return will be in October so I'm not sure how it will impact on my transaction fee rate.

Will my rate for the month go down?  If so, will it affect transactions for the entire month of October.

How does the return affect the rate of fees per transaction for October?

[PayPal_Adrian]

gourdguru,

The merchant rate is calculated once a month, based on the total payment volume.  Total payment volume is calculated similar to this:

Total Payments Received minus Total Payments Refunded and Reversed = Total Payment Volume

A simple algebraic formula for it would be A - B = C

So, if I receive $3000, but refund (or are forced to refund) $1000, my Total Payment Volume for the calculating period would be $2000. 

So while the transaction might be counted in your September volume, it will count against you when calculating your October volume - which won't be counted until the end of October. 

Hope this helps,

Adrian

[gourdguru]

Thank you Adrian, it does help.  I had a feeling that was how it worked but I've never encountered this problem in all the years I've been using Pay Pal.  Lucky I guess  :))

[PayPal_Adrian]

You're welcome, anytime!