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Paypal Fees for Refunds

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Contributor

Re: Rip Off Notice!! PayPal to no longer refund the 2.9% merchant fee on refund

I agree...this is a complete ripoff and absolutely predatory.  The "In line with industry practice" is especially precious.  Because other companies **bleep** you, it's acceptable for us to **bleep** you.  F.  Paypal.  I know Stripe has the same B.S. practice, so who's everybody using for credit card processing that doesn't have a "**bleep** our customer" policy?

 

SLS

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New Community Member

Re: Rip Off Notice!! PayPal to no longer refund the 2.9% merchant fee on refund

Yes, this is complete, utter nonsense. Standard industry practice is complete B.S. I've operated a small business for nearly 17 years, and have accepted PayPal the entire time. I will now inform ALL 10,000 of my customer base (mostly recurring customers) that I will either need to A) Stop accepting PayPal (most have credit cards anyway) or B) They will NOT be refunded the PayPal fee if they make a make mistake or the order needs to be returned. This will result in less business for PayPal if A) I don't even offer as an option any more B) Customers laugh at the notion of any product return getting whacked between 2.9% to 4.5% by PayPal. Yes, about 4.5% is what the fee is for my International customers, which is about 40% of my overall business.

 

PayPal might think small businesses like mine should be able to absorb and and not pass along the butt reaming to their customers? NO way. Bad for business, and certainly not tenable for a small business that is already forced to compete with the likes of Amazon free returns and free shipping.

 

An NO, PayPal... this ISN'T industry norm. I also accept Visa, MC, Discover, and Amex as Payment options, and none of them charge these fees beyond the per transaction fee that is a whopping .05.

 

Whoever the genius is at PayPal that decided to institute this policy needs to have their head checked. 

 

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Contributor

Disturbing info

Is it true Paypal will be still collecting their fee if you refund someone's money for a product? If this is true I will going in another direction away from Paypal.

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Esteemed Advisor

Re: Disturbing info

@id10t 

 

Yes, they are keeping the fee on refunds.


Kudos & Solved are greatly appreciated. 🙂
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Contributor

SELLERS NOW HAVE TO PAY PAYPAL FOR REFUNDS ???!!!

I just received a policy change letter that was quite amusing as it included statements (plausible arguments) assuring it's sellers that PayPal keeping the transaction fee for every refund demanded by our buyers is fair, because the letter states "We only adjust our policies when we are confident the changes are fair and aligned with the value that our services provide to your business."

 

PayPal thinks they should now profit on our loses... by keeping the fees for our sales that fail through PayPal's REFUND ON DEMAND policy that is promoted to buyers by PayPal. WTF!

 

PayPal is expecting it's sellers should realize that it's a privilege to use PayPal services and we should also realize just how much money PayPal makes for us. Well, Shulman apparently does not realize that without Sellers (which are PayPal's customers)  there would be no PayPal.

 

How arrogant and stupid... and that is not intended to be a derogatory statement, it's a description.

 

Or maybe it's not stupidity... hmm!

 

PayPal obviously is displaying contempt for it's Sellers!

 

It's as if PayPal thinks Seller's are crooks and buyers need to be protected by PayPal. WTF!

 

I'm out of here!

 

 

 

 

 

 

 

 

 

 

 

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New Community Member

Re: SELLERS NOW HAVE TO PAY PAYPAL FOR REFUNDS ???!!!

This is a terrible policy I agree.

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Contributor

Re: SELLERS NOW HAVE TO PAY PAYPAL FOR REFUNDS ???!!!

I will definitely be pushing alternative payment methods -- e.g. Square. 
Paypal just got rid of one of the FEW reasons to stay with them.
They'd better reverse this disastrous business decision.  Because this is definitely enough to send customers elsewhere.
Like me.

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Contributor

OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

However, I am pleased that Paypal did not hide this information in the fine print, and made an effort to let us all know this beforehand.

 

I will, therefore, do my best to NOT USE PAYPAL for payments, to avoid any such unreasonable charges.  It is hard enough, as we all know, to obtain a Paypal refund (there are so many exceptions) -- and then to go further and not refund the transaction fee -- well Greed will have its reward at some point.  One of these days Paypal will find itself in a situation when itself will be penalized -- and I hope that penalty will be as harsh as this new rule.

 

 

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Esteemed Advisor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!

@RSinclair3 

 

You're late with the outrage.

 

If the refund is not due to a mistake on your part, deduct it from the amount you're refunding. It's not against the PayPal TOS as far as I know.

 

So, say you're paid $5.00 and you're refunding $5.00, deduct the amount of the PayPal fee from $5.00 and put that amount as the refund amount.


Kudos & Solved are greatly appreciated. 🙂
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Contributor

Re: OUTRAGEOUS! Paypal will no longer refund the original transaction fee!


@sharpiemarker wrote:

If the refund is not due to a mistake on your part, deduct it from the amount you're refunding. It's not against the PayPal TOS as far as I know.


Ludicrous suggestion. That has to be one of the best methods for losing a potential or existing customer!

Example:
At the top of our order page, we have a warning that all prices on the page apply to purchases made within Metropolitan France only. This has a flashing warning sign and a link to our contact page stating that they should contact us for shipping costs to their particular country. Nonetheless, at least 3 people each week still place an order via that page for delivery to another country. Our response is to instantly refund the purchase providing an explanation and a quote for shipping to their country. They can then choose to accept the quote, in which case we send them a PayPal invoice manually, or they may change their mind about buying. If we were to charge them PayPal's 2.9% fee for their error, do you honestly believe we would ever see them again? And what would they be saying about our company behind our backs? Remember, good news travels slowly but bad news spreads like wildfire! Evidently, PayPal gave that last phrase little consideration when they decided to implement this new policy.