Paypal Fees for Refunds

Hobi1202
Contributor
Contributor

According to the new Paypal user agreement effective May 7th, paypal will no longer credit you back the fees when a customer gets full refund or even cancels an eBay order before the item is shipped.  

 

Does anyone have any suggestions on how to handle this financially?  I sell for a business and this is going to throw or net deposits off on a regular basis.

 

 

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104 REPLIES 104

4macpro
Contributor
Contributor

First of all thank you for the reply.  I do believe you are correct, but the fact that we've come down to:

 

Charge the buyer $56.14 for cancelling an order in under 24 hours

 

or

 

Don't sell expensive stuff 

 

Leads me to believe paypal will now begin it's long a winding downfall.  I'll be leaving as soon as is humanly possible. 

 

 

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Zaramella
New Community Member

Paypal do not reimburse the paypal commission when you refund a buyer

Is anyone not thinking that this is a scandal?

A guy buys you something on ebay,he pays he decides that he does not wants the object  anymore

and it cost you money

You can even annoyed people you don't like and have fun with that

Would like to know if a lot of people think that this is a scam,a rackett,a rip-off,a con...

Thanks

 

 

 

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kernowlass
Esteemed Advisor
Esteemed Advisor

@Zaramella 

 

Its paypal policy, if you are not happy with their policies then you can use another payment processor surely?

No one is ever happy about possibly paying more money but there is nothing you can do about it.


Advice is voluntary.
Kudos / Solution appreciated.
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Nicopatch
Contributor
Contributor
So ...you use paypal for years giving tons of commissions as a seller. Policy with paypal, buyer is always right but it was Ok to refund buyers because in the end it did not cost anything. Now when à lot of small businesses are captive they change their policy in a big way. Heard of a guy complaining losing 650$ because He had to refund à Chinese guy because he wanted à lowered invoice for custom purpose I refunded à guy easily recently because I was not aware of the policy change. Now I will refund minus paypal fees if à customer make a mistake...and try to use paypal as little as possible
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tentrees123
Contributor
Contributor

Totally unimpressed by this new policy. Just another way for PayPal to make more money - they are turning into every other financial institution that is only concerned with their own profits. Love the old 'if you don't like it go elsewhere' response - not that much of an option if selling on eBay..

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SOEKS1
Contributor
Contributor

@tentrees123 wrote:

Love the old 'if you don't like it go elsewhere' response


I wonder how long I would be able to stay in business if I tried that on my customers?

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PRS7
New Community Member

With the new policy published by Paypal for Sellers there is an unexpected gotcha.

 

If the buyer has multiple Credit Cards on file and of course Paypal has a "DEFAULT" pre-selected and user completes the transaction.

Short time later user realizes they picked the wrong CC and request the refund from Seller, which Seller obliges, which is where the GOTCHA happens.

The Seller is charged the FULL TRANSACTION FEE for this honest mistake.    How is that fair to Seller? 

If this is the strategy PayPal is banking on to thrive, the SELLERS should switch to other means, ie.  Square ...

This is totally not right!!!

 

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angrybird001
New Community Member

Just lost $21 transaction fee for a refund due to buyer's changing mind within 30 mins. I am expecting huge transaction fees to be eaten by paypal in refund for this coming holiday season. I really hope new ebay payment system open to public soon.

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SOEKS1
Contributor
Contributor

One of my issues is that we offer free delivery within metropolitan France (the company is based in France) and we ask anyone outside of France to use our form for requesting shipping costs to their country. Despite a flashing warning at the top of our order page about this, people outside of France kept on placing orders which we promptly refunded. That was fine while PayPal also refunded the transaction fee.

Since this new policy, we put in place a confirmation page before being able to reach the order page. It basically explains that our prices only apply to metropolitan France and to click on "YES, I live in France" or "No, I need a shipping quote". The page also warns them with a large WARNING sign that should they click on the YES button and place an order for delivery outside of France, we will refund their order immediately less PayPal's transaction fees. You would think that would be enough to put them off but no, some people still try their luck and then kick-up a stink when they lose the amount PayPal kept.

If this ridiculous policy is harming sellers, it is having an even worse effect on consumers and believe me when I say good news travels slowly but bad news travels like wildfire.

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SquirtleSquad
Contributor
Contributor

I'm here to complain too.  So much money lost for canceled orders for no reason.  The dreaded I want this before Christmas even though I ordered after your deadline and ect.  Greedy Greedy BS, and I will abandon PayPal at first opportunity with this dumb decision.  

 

Complaining here is not enough, call your representatives.  

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