Paypal Fees for Refunds

[Hobi1202]

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.

[artihi]

Our business has paid Paypal hundreds in fees every year since we started with them about a decade ago.  I don't do refunds often but just did one tonight and saw they didn't reverse their fees on the partial refund I did.  I called them thinking this must be an error and found out about this "new policy" of keeping the transaction fees regardless.  This sounds CRIMINAL to me.  They have officially lost our business starting NOW!  What a joke.

[lkswiu]

Did paypal recently changed the policy about refund?
I notice that the paypal fee will not be refunded when you refund a buyer of a transaction ?
Pleas shed some light on the subject.

Thank you 

[MarufAhmed]

Hi!

I think it is not a fair policy by PayPal if they charge on refunded money. This needs to be addressed. Does anyone know how to raise this dispute? I tried it in Resolution Centre, but failed to do this as it did not consider raising this issue. 🙄

Thanks.

Maruf

[Temp20221228X]

No resolution at all,  PayPal does not care at all with these bad practices.  Between us getting reamed for high domestic shipping costs, rising ebay fees and now PayPal stealing a part.  There is nothing left when we sell something.  We are basically selling to make them rich.  I lose money because of these dumb **bleep** policies.  Hope there will be something else that will disrupt this monopoly soon.  

[FrankenTurbo-Sh]

Our business frequently offers partial refunds to customers whose needs change.  And less frequently offers full refunds.  In all these cases we feel our payments processor should refund back the fees they charged in a modified transaction.  Our solution going forward will be simple:  we shift the cost to the customer.  If they request a refund, they receive what they paid minus the fee that PayPal no longer refunds.  We make this clear that the incomplete refund is owing to PayPal's rules, not ours.

My guess is other sellers will do this as well.  And my added guess is that this will lead to a flood of buyer disputes, which will be costly for PayPal to adjudicate.  Perhaps then they will see this decision isn't as smart as they originally thought.