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.

 

 

Login to Me Too
104 REPLIES 104

CharlieZheng
Contributor
Contributor

Hi guys, I noticed that I didn't get Paypal fee back after the refunds I sent to buyers in Dec 2019, it this something new? Before, Paypal only charged $0.3 per refund transaction but they are now taking it all? Bit silly....

Login to Me Too

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@CharlieZheng 

 

Last update to this was in Sep 2019 so its fairly recent.

 

Product Disclosure Statement 

 

Commercial Transaction refund fee

 

18.16 If you issue a refund (partially or fully) of the Commercial Transaction payment, there are no fees to make the refund, but we will retain the full amount that you originally paid us. Your buyer’s account will be credited with the full or partial refund amount of the Commercial Transaction payment and your account will be debited with the full or partial refund amount.

 

18.17 The amount of the refunded payment will be deducted from your PayPal account.

 


Kudos & Solved are greatly appreciated. 🙂
Login to Me Too

PlugGuy
Contributor
Contributor

Still the most irrational and unfair practice in the e-comm world.  We're leaving as soon as we line up a more fair option.  There is no reason PP can't simply give us a waiver on this for 2-3-4-5 days if a customer is going to cancel.  Makes zero sense, but PP is after the buck for themselves, not for us as merchants who have funded their phenomenal growth the past 20 years.  We're getting stung every day on this mess, and it's more than just a few pennies.

 

WAKE UP PayPal.  Maybe as they lose more and more customers they'll consider a change.  Totally sucks.

Login to Me Too

SOEKS1
Contributor
Contributor

Just a thought...
Although it will be up to online retailers using PayPal's service to implement their own system to make customers aware of PayPal's refund policy, I'm thinking that eBay should make it part of their T&C to warn all buyers that, in the event of a cancellation or refund demand, PayPal's transaction fee will not be refunded. Therefore, neither eBay nor the seller can be held responsible for the loss of this fee. Should the buyer not accept this policy, he has the right to take up his case directly with PayPal.

Login to Me Too

CharlieZheng
Contributor
Contributor

Some update.

 

Got in contact with Paypal support (finally after 1 million attempts), they told me this:

"Hello. As per notifications sent out in September 2019, PayPal is no longer refunding our processing fees when a payment is refunded."

https://www.paypal.com/au/webapps/mpp/ua/useragreement-full?locale.x=en_AU#transaction-fees

 

This is robbery, and totally unfair, cancellation is quite normal when selling things online and sellers may lose tons from this.

I'm now considering a law suit.

Login to Me Too

ILOVECOMICBOOKS
Contributor
Contributor
So im out PayPal not only is now making sellers keep money in your account interest free! The new policy in refunds is if it's not in your PayPal account you cant do it. I could have thousands on my linked bank but it dosent matter. Also if I want my cash I need to pay 1 percent or wait up to 5 days to get my money. And finally they are keeping the initial 3 percent they take from your sale if you have to refund they keep that money. 1000 positive feedbacks on Ebay without a negative in a year if selling a few hours a week make overv 22k TOP rated plus seller. Not anymore. ITS TIME TO SHORT PAYPAL STOCK. Ebay told me many many sellers are complaining to them. PayPal you just jumped the shark.
Login to Me Too

PlugGuy
Contributor
Contributor

Yeah, we're all getting killed with this irrational unfair policy.  We are now examining multiple other options to move our merchant processing to another vendor, and expect to make the move from PP soon.  There are some who fairly provide refunds on transaction fees, so PP will eventually realized their idiotic policy move to provide more revenue to themselves is killing the small businesses (and medium) that got them there.

 

Login to Me Too

ijdistribution
Contributor
Contributor

Hi,

I tested the paypal "scam"  and they take the "FIXE" fee like the 0.30 per order fee (NOT the 2.9% of the transaction)  

Paypal now want seller pay pay pay as usual its should name PAY"SELLER"PAL

and they let buyer cancel or asking refund without reason and SELLER need to pay the stupid buyer mistakes!

Yes thats paypal but theres a round about this... if a buyer ask to cancel order i send a great message that paypal keep 0.30$ on transact so you refund less 0.30 on the order. EX. If its 3$ total you refund on paypal 2.70$  But risky for negative feed on Ebay. You choose keep the 0.30 or get a negative !

Go PAY PAY PAYPAL FEEEES

Login to Me Too

SOEKS1
Contributor
Contributor

That may be the case for you but they are taking 2.9% from my sales. Perhaps there is a minimum charge of 0,30 € ?

Login to Me Too

ijdistribution
Contributor
Contributor

for me i check and its always the fix fees charged

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.