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Is it true Paypal will be still collecting their fee if you refund someone's money for a product? If this is true I will going in another direction away from Paypal.
I just received a policy change letter that was quite amusing as it included statements (plausible arguments) assuring it's sellers that PayPal keeping the transaction fee for every refund demanded by our buyers is fair, because the letter states "We only adjust our policies when we are confident the changes are fair and aligned with the value that our services provide to your business."
PayPal thinks they should now profit on our loses... by keeping the fees for our sales that fail through PayPal's REFUND ON DEMAND policy that is promoted to buyers by PayPal. WTF!
PayPal is expecting it's sellers should realize that it's a privilege to use PayPal services and we should also realize just how much money PayPal makes for us. Well, Shulman apparently does not realize that without Sellers (which are PayPal's customers) there would be no PayPal.
How arrogant and stupid... and that is not intended to be a derogatory statement, it's a description.
Or maybe it's not stupidity... hmm!
PayPal obviously is displaying contempt for it's Sellers!
It's as if PayPal thinks Seller's are crooks and buyers need to be protected by PayPal. WTF!
I'm out of here!
I will definitely be pushing alternative payment methods -- e.g. Square.
Paypal just got rid of one of the FEW reasons to stay with them.
They'd better reverse this disastrous business decision. Because this is definitely enough to send customers elsewhere.
However, I am pleased that Paypal did not hide this information in the fine print, and made an effort to let us all know this beforehand.
I will, therefore, do my best to NOT USE PAYPAL for payments, to avoid any such unreasonable charges. It is hard enough, as we all know, to obtain a Paypal refund (there are so many exceptions) -- and then to go further and not refund the transaction fee -- well Greed will have its reward at some point. One of these days Paypal will find itself in a situation when itself will be penalized -- and I hope that penalty will be as harsh as this new rule.
You're late with the outrage.
If the refund is not due to a mistake on your part, deduct it from the amount you're refunding. It's not against the PayPal TOS as far as I know.
So, say you're paid $5.00 and you're refunding $5.00, deduct the amount of the PayPal fee from $5.00 and put that amount as the refund amount.
Agreed. We've long been pleased to recommend Paypal to our customers, over the card processors, precisely because they *did* refund the purchase price in full, including their fees. Now they are no better than VISA, MC AMEX etc.
And with an estimated 30% or more online purchases returned:
they are making out like bandits, at the expense of their customers, and their merchants.
We urge PayPal to retain their previous customer friendly return policy asap.
Now it's a matter of comparing whose fees are lower and go with that. Or try other best practices to lower chances of returns, better/clearer item descriptions, better packed to reduce in-transit damage or change the type of item you're selling all together that has less, rare or no chance of being returned.
Thanks for the reply. Fees are all similar (AMEX excepted). We've bent over backwards over 25 years with exhaustive descriptions, exacting packing, and no-quibble refunds. But we sell high-end guitars online, which can be returned for any number of player preferences. We try to make clear that we can't refund CC fees, but these are high-dollar purchases, and customers are sometimes more than miffed that they can't get full refunds from the processors on return items.
Paypal was exemplary in this regard, now they're just another vulture. But we have to depend on them, and they know it, hence the abusive policy.