Paypal fee partial refund

SunnyDays
Contributor
Contributor

The transaction was for €1000 but the person who paid me sent too much money by mistake, which they paid €2500. There was no way I could prevent this from happening since Paypal payments do not have preauthorizations. So I refunded them €1500 that they mistakenly overpaid. Paypal charged me €110 for the entire amount which is a 4,4% of the amount. Now that I refunded the payer 60% of their money (I refunded them €1500 out of €2500 they paid) I thought Paypal system would automatically refund part of the fee (about €66) to me. So I ended up paying €110 in order to receive €1000 via Paypal. This used to be the case until recently or is this still the case? The €66 is more than my profit for the transaction.

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kernowlass
Esteemed Advisor
Esteemed Advisor

@SunnyDays 

 

Paypal no longer returns the fee you were charged when your buyer paid as part of any refund that you issue.
Paypal processes your buyers original payment and then the refund for you, the fee is for providing that service.


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SunnyDays
Contributor
Contributor

Since there is no preauthorization functionality in paypal, Paypal Inc. could implement ACCEPT functionality where the payment is initiated by the sender (customer) but the money is not yet sent to the recipient until they accept it. Recipient (or merchant) reviews the initiated payment that it is not processed yet by Paypal and accepts it or rejects it. Once the recipient (or merchant) ACCEPTS the payment, the non-returnable Paypal fee is charged. This kind of functionality would be similar to preauth that merchant accounts such as Authorizenet or Stripe have.

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kernowlass
Esteemed Advisor
Esteemed Advisor

@SunnyDays 

 

You're welcome.


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Kudos / Solution appreciated.
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