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

SGW55
Contributor
Contributor

Hi,

 

How can that work ?

In order to receive the 10% sellers fee I have to cancel the order and refund the buyer, all done by eBay automatically.

If I just send a partial refund to the buyer ( less 3%) then I still pay 10% sellers fees. 7% worse off !!

I have to offer paypal as a payment method on eBay.

IF that wasn't the case none of this would matter, because I wouldn't.

 

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lee_2003
New Community Member

I am currently tryint to refund a buyer but paypal will not give back the fee they take from me. what can i do

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Solved

kernowlass
Esteemed Advisor
Esteemed Advisor

@lee_2003 

 

Paypal no longer refund the fee.

They keep the fee as payment for processing your buyers payment for you and then processing the refund for you.


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SOEKS1
Contributor
Contributor

@kernowlass wrote:

@lee_2003 

 

Paypal no longer refund the fee.

They keep the fee as payment for processing your buyers payment for you and then processing the refund for you.


As online retailers, if someone purchases a product and decides she ordered the wrong size, she has the right to return it for a refund and we have to pay her return shipping costs. This means we make an instant loss but fortunately, it doesn't happen that often so we take the hit as being part of being in business.

Unless I am mistaken, when PayPal refunds a purchase, the entire process is done digitally with no human interaction. This means the genuine cost to PayPal is zero. In other words, if PayPal refunded the transaction fees also they would not be out of pocket, unlike the retailer who has to foot the return shipping costs.

See if you can guess why I stopped recommending PayPal to my friends and colleagues...

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kernowlass
Esteemed Advisor
Esteemed Advisor

@SOEKS1 

 

Whether you use paypal or not matters not one jot to me to be honest.

Someone asked the question of whether fees are returned on refunds and i answered it.


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gardenlover6789
Contributor
Contributor

This is an absolutely ridiculous policy. I just refunded a customer because neither one of us wanted to get stuck with the Paypal fee only to find out that I am STILL stuck with the fee and then had to go ahead and wait for the check to arrive in the mail. Had I any idea that I would be paying this fee either way, I would have just kept the payment and stopped using Paypal for future transactions. I got absolutely nothing out of the transaction and will not be accepting Paypal for payment anymore. What a rip off. Not worth it.

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kernowlass
Esteemed Advisor
Esteemed Advisor

@gardenlover6789 

 

So you want to break paypal rules and accept payments from buyers that paypal process for you free of charge?

You want to avoid paying the fee that the rest of us have to pay?

Well if everyone did that paypal would have no money to run the service or pay their staff.

 

I think the fact you had to pay the fee that you were trying to avoid (when you should be paying it), is to be honest karma in my opinion which of course you won't appreciate.  


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abhn
Contributor
Contributor

hi

i don't agree, if paypal want to charge for processing refund it should be certain amount for example 20p or let's say 50p or £1, i had a buyer bought something worth £300 and after 10 minutes he wanted to cancel the transaction so the fee is over £10 ....paypal takes £10 for what??? that is not a fair trade !! how about something worth a £1000?

thanks

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PlugGuy
Contributor
Contributor

Nothing.

 

Read the thread here.  Policy changed last fall.  PP robbing merchants by not refunding fees.

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HoangTin8888
Contributor
Contributor

you are right. We can't sell our product but they still taken the fees 🙂 How can they work like a thief? 

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