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Paypal Fees for Refunds

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Esteemed Advisor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

@archtops 

 

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.


Kudos & Solved are greatly appreciated. 🙂
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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

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. 

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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

BTW: To put it in perspective, many of our customers are paying up to $300 or more in credit card charges on a single purchase here. This is a very significant hit when an item needs to be returned.

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New Community Member

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

PayPal can kiss it goodbye with this new policy. USPS shipment gets lost in transit and a refund is issued? They don't care. Buyer screws up shipping info and just gives up on correcting it, so an invoice must be refunded? They don't care.

 

The bottom line is this about PayPal and their new policy.

 

THEY DON'T CARE

 

@PAYPAL

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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

One of the reasons I use paypal is the refund of fees, when a buyer changes his/her mind and you like to accomodare the request. Now you have to count your loss or ask people to pay with direct debit into your bank account. Buyers expect the full payment  returned, except when told before their purchase that a fee will be incurred if they ask for a refund. I would say that its ok to use paypal for small amounts, but I would in case of large amounts use my bank if the transaction is national.

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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

Like many here, we are also going to face a burden on this policy change.  We ship parts around the world, and customers pay a deposit until their core part arrives back to us - if it's damaged we have to use the core deposit to replace.  If it's ok we refund it.  These deposits can be hefty, so the fees are not peanuts.

 

Speak your mind and get in touch with the leadership at PayPal (contact info is readily available on various sites).  Hope these so-called geniuses realize the major impact this is going to have on merchants (and others), and will significantly impact everyone's bottom line.  Not a smart move.

Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

I hope PayPal factored in the loss of the majority of eBay sellers who would have still offered PayPal as an option alongside eBay's managed payment before this silly policy/theft. They are no longer the only game in town at this point.

 

I had intended to stick with PayPal permanently, but they were determined to make me sever all ties. They would have gotten a fair amount of the pie, but now they get no pie at all. I am 1 seller, but multiply that by a million or more and that is a very very substantial loss for PayPal. When they come back holding their hat in their hands offering apologies after they realize what a monumental mistake this policy is, it will be too little too late if they go forward with this on October 11th. 

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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

eBay is a particularly good example of the damage this policy will do to sellers.
I read in a professional eCommerce magazine recently that due to the European community's 14 day return with full refund policy to include return costs, a staggering amount of clothing buyers will place orders for several sizes to ensure they get their exact size. They then return the rest. Ouch!!!

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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

We will do everything in our power to move any buyer from PayPal to other payment options and inform the public about this unbelievable move. Once ebay offers a new instant payment option other than PayPal (which will happen in 2020) we will move.

 

We have added the following clause in our online-shop T&C - 'If you have payed with PayPal please note that after October 2019 PayPal is no longer refunding the selling fees on refunds so any PayPal orders will have PayPal fees deducted in any requested refunds.'

 

We have also started a case at the Australian Financial Complaints Authority and hope all Australian PayPal processors can do the same or use a similar body in your country - https://www.afca.org.au/

 

It is clear that PayPal is profiteering from this move as for example the fees PayPal pays to credit card companies such as VISA, Mastercard and AMEX for processing these refunds will refund all credit card charges in full for any refunds. So this can not really be a legal move and simply saying you can leave PayPal if you don't like it might simply not be enough legally --> need some help on this front so any legal person who wants to have a go at the PayPal T&Cs in that regards would be my hero!

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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

Good point on national agency.  Not sure in the US but this place might be the first start.  Anyone tried?

 

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