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

vferdman
Contributor
Contributor

I am fairly certain that I will be leaving PayPal before or around October 11, 2019 when this idiotic, unfair and punitive policy goes into effect. I hope most of the ebay sellers do the same. Once we find a way to live without PayPal, they will be dead. What a stupid move on their part!

 

 

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Hmerly
Member
Member
Now that this policy is being implemented on October 11th, I will be exiting Paypal. I’ve been a loyal user for 10 years and will now have to find an alternative. My three accounts will not tolerate outright theft. Goodbye.
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Scratcher
Contributor
Contributor

I have a hard time accepting that people really understand the impact of this policy.  I sell a bunch of items that are more than $2000, and I have generally used PayPal for those transactions.  I don't have a lot of refunds, but I do have some, and this is a very expensive penalty to assess on a seller just because a customer made a mistake or changed his/her mind.

 

When I had a similar problem with AMEX, I dropped AMEX for this reason.  Now I'm investigating options beside PayPal.  I think this will motivate a lot of people to move off of PayPal, too.

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AlbanyDavid
Contributor
Contributor

Add me to the list off long time sellers who are abandoning PayPal because of this. They heard our outrage over this last time they wanted to put this policy into place and they backed off, but now it's like they just stopped caring.

 

Mark my words, October 11th will be the day that those in charge remember as they day they wish they could take back. I am astounded that those who make policy would chose to do something this self destructive. They have went from losing some PayPal sales on eBay yet still getting a sizable piece of the pie once managed payments on eBay is mandatory to now losing the majority of sales on eBay.

 

Whatever money they see from this policy is going to be absolutely dwarfed by the money they lose from the mass exodus of eBay sellers who will refuse to do business with PayPal after this. Someone did not think things through when deciding that going forward with this was the best course of action.

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vferdman
Contributor
Contributor

Make sure to spread awareness of this among your friends, family and business associates. Encourage people to dump PP unless PP reverses this horribly unfair policy.

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AlbanyDavid
Contributor
Contributor

Absolutely. Tweet about it, post about it on Facebook and social media, call PayPal and voice your anger and willingness to leave them over this. This is such a greed driven move that I will probably still ditch PayPal just for trying it, even if they do cancel the plans. This shows me exactly what kind of dishonest company they are.

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Chris999999
New Community Member

So any one find a solution??

 

we have been accepting paypal for years.. but surely get customers almost everyday.. "oh i bought the wrong item"

or can i return this item for a refund.

 

We be the "nice-guy" and say yes you can return it for a refund...

i guess it will have to be exchanges after this!!

 

We also sell $1k plus items.. on which $29 is a KILLER in fees!!

 

shame on you paypal!!

Any Aussies on here???

can we go to AFCA with a complaint?

 

 

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vferdman
Contributor
Contributor

The solution is to not use PayPal. I am actively researching other options and there are many of them. Just google "PayPal alternatives" and you'll be on your way to a solution. Ebay will also offer PayPal alternatives soon.

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kernowlass
Esteemed Advisor
Esteemed Advisor

@vferdman 

 

Loads of alternatives but unfortunately ''buyers'' mostly have paypal accounts and want buyer protection.


Advice is voluntary.
Kudos / Solution appreciated.
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vferdman
Contributor
Contributor

Buyers are fine with paying with MC/Visa.

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