Fees Charged for Refund of Payment????

[angel2009]

Could someone please tell me why???

When i refund a paypal payment to the buyer due to overpayment on shipping or item was not available..why are they not sent the full amount they paid or getting the full amount i am refunding??? This has happened 2x now ...buyer is not receiving the full amount of the refund being issued....i have been searching for a answer now for 2 days and have not found the answer.....There is a generic question under FAQ ....asking if the buyer receives full amount of refund but then it never answers that part......

Please can someone help as soon as possible it is not fair to buyer or seller!!!!!!!

[PayPal_Adrian]

angel2009,

Are you using the Send Money tab to refund the buyer?  If so, it's not considered a refund - it's a payment, and the buyer would pay fees to accept it.

In order to avoid this going forward, view the payment you received from the buyer.  If you use the "Issue Refund" link there, your buyer won't pay a fee and your fees to receive the original transaction will be pro-rated accordingly.

Hope this helps,

Adrian

[angel2009]

I went into details then i used the issue refund link.......that is how i have always done it but the last two times i have these fees showing up and buyer not receiving the full amount of the refund,,,,,This never happend previously when i issued a refund !!!

I do NOT use the Send Money so why are the fees being charged???

[angel2009]

I went into details then i used the issue refund link.......that is how i have always done it but the last two times i have these fees showing up and buyer not receiving the full amount of the refund,,,,,This never happend previously when i issued a refund !!!

I do NOT use the Send Money so why are the fees being charged???

[sandypurins]

What information are you looking at which leads you to believe that the buyer didn't receive the full refunded amount?

[angel2009]

***This is the First One she should have received $25.95 not $25.20

Refund (Unique Transaction ID #2WU62910FN6593432)
See related 2R3178747R392703C

Original Transaction  Date  Type  Status  Details  Gross  Fee  Net  Oct 24, 2010 Payment From Deborah Agregard  Refunded  Details $25.95 USD  -$1.05 USD  $24.90 USD 

Related Transaction  Date  Type  Status  Details  Gross  Fee  Net  Oct 24, 2010 Refund  Completed  ... -$25.95 USD  $0.75 USD 

-$25.20 USD 

****This is the 2ND one...**** he should have received $8.45 and he was only refunded $8.20

This transaction has been partially refunded.
For further details please see transaction 1C269446PM184994Y Original Transaction  Date  Type  Status  Details

 Gross  Fee  Net  Oct 25, 2010 Payment From George OConnor  Partially Refunded  ... $51.64 USD  -$1.80 USD  $49.84 USD 

Related Transaction  Date  Type  Status  Details  Gross  Fee  Net  Oct 26, 2010 Refund  Completed  Details -$8.45 USD  $0.25 USD  -$8.20 USD  Total: $43.19 USD  -$1.55 USD  $41.64 USD 

---

[PayPal_Adrian]

angel2009,

Excellent!  Thank you, that makes more sense. 

Whenever you make a refund, PayPal pro-rates your fees. 

To keep the example simple, lets say you received $10, and paid a $1 fee to receive it (these rates are not actual).  So you receive $9 net.

In order to refund the buyer the full $10, you don't have to pay $10.  You pay $9 and PayPal pays the $1 you paid in fees.  So you pay $9, PayPal then adds the $1, and the buyer gets $10.

The missing amounts you're describing, and that are showing below, is the amount of the fees PayPal waived.  Your buyers were refunded the correct amount. 

Your first example is:  Refunded  Details $25.95 USD  -$1.05 USD  $24.90 USD

This buyer received a $25.95 refund; PayPal paid $1.05 of that refund; you paid $24.90.

The second example is:  Refund  Completed  Details -$8.45 USD  $0.25 USD  -$8.20 USD 

This buyer received an $8.45 refund; PayPal paid $0.25 of that refund; you paid $8.20.

Hope this helps,

Adrian

[angel2009]

Thank You for getting back to me so soon it is much appreciated....and thank you for straightening this out for me...I am just really happy they received what they were suppose to......

Would there not be a better way of showing that the buyer received the full amount of the refund ???

I got it now ....

Thanks Again !!

[michla]

Adrian, since this topic regards something I just experienced with Paypal yesterday, I would like to butt-in with a comment that will be valuable to the decision-making processes at Paypal,  I'm sure.

A seller overrefunded me a couple days ago for defective Ebay auction goods by issuing a refund through my original purchase, that was fine.  But the seller also mistakenly used "Send Money" to me for the same amount ($8.00)--thus duplicating his effort--or overrefunding the money.  He didn't say/write anything about it, but I'm honest and refunded that back to him through that original "Send Money" transaction ("issue a refund").

I noticed a .30 cent debit to my Paypal account soon after so I telephoned Paypal support, and it was obvious that  the agent on the other end of the phone had no tactfullness of what he was trying to tell me--the discussion went around and around until I told him what he was saying didn't make sense.  He finally  tried to give me the information to find a Paypal webpage Transaction Fee details that would bear this out.  I was in disbelief because I've always been an honest Ebay auction seller, and when someone overpaid me for estimated shipping and it was less, I always refunded that overpayment back throught the Paypal transaction--and never was a debit placed on my account to do so.  We disconnected from this telephone conversation so I could get on my computer and look for this info.

I unable to locate the Paypal website transaction details I was provided, so I phoned Paypal Customer Support again and a different, more-experienced agent then told that this is something NEW--that Paypal as of a couple months ago, decided to make the original PROCESSING fee NON-REFUNDABLE when performing a refund back to the buyer.  This is the first time I heard of this, and something that doesn't make sense to me if it's true.

An Ebay auction seller (or person refunding through Paypal) will be LESS LIKELY to be honest about refunding when they know it's going to cost them something (anything).  In other words:  Paypal is encouraging dishonesty in online auction payments by doing this. 

CASE IN POINT: Why should *I* have to pay to be honest ?? --that shouldn't cost me anything, right ?

(By the way, there is nothing about this Non-Refundable Processing Fee in Transaction Fee "Notifications" at the top right of the home page after sign-on, and there should be for people like me in disbelief)

[zpinkangel]

I just had the same thing happen. I've given few refunds (maybe 4) in the 10 yrs Ive been a member, but when I have I was NEVER CHARGED a fee...but I got charged last nite and put in the red and account on hold for a stinking .30 cents..the buyer paid wrong and I had to reissue the correct invoice, not my fault!!!   WHat the F!!...under Fees it does not mention this...under giving a refund it says they are FREE. I copied it below.  I never got a note about this..If I'd known, I'd found another way.
 

• You can refund payments that are Completed, Pending, Cleared, or Uncleared.
• There is no fee to refund a payment.
• When you refund a payment, we refund the original transaction fees.

• If there’s not enough money in your PayPal balance to cover the refund, we’ll issue the refund from your primary bank account
  
  I'm sure that will be changed soon...You start charging sellers for refunding too, NOT FAIR...what you don't get enough in fees already?? YOU DO!!!! You and ebay make more than I do and I do all the work and take all the risks. I"m getting so sick of all the fees and they go up constantly...and still no REAL customer support....I'm really surprised with no people contact, that we still use ebay/paypal, we don'T stand for that anywhere else....I hear theres a new Pay Way out there. Now I'm going to check them out. Cause Ebay since you bought out Paypal, your both going downhill with all the changes in fees...and I'm tired of paying people to buy my stuff after you take all the fees!!!!

[sandypurins]

---

@michla wrote:

I unable to locate the Paypal website transaction details I was provided, so I phoned Paypal Customer Support again and a different, more-experienced agent then told that this is something NEW--that Paypal as of a couple months ago, decided to make the original PROCESSING fee NON-REFUNDABLE when performing a refund back to the buyer.  This is the first time I heard of this, and something that doesn't make sense to me if it's true.

---

The new refund fee was announced in the Policy Updates section of PayPal's website... here's the text and link for that policy update...
 
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=...

Section 8.7 Additional Fees of PayPal's User Agreement describes the refund fee.  Here's the text...

Purchase Payment 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 original Purchase Payment and is listed above.