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Agreed. We've long been pleased to recommend Paypal to our customers, over the card processors, precisely because they *did* refund the purchase price in full, including their fees. Now they are no better than VISA, MC AMEX etc.
And with an estimated 30% or more online purchases returned:
they are making out like bandits, at the expense of their customers, and their merchants.
We urge PayPal to retain their previous customer friendly return policy asap.
Now it's a matter of comparing whose fees are lower and go with that. Or try other best practices to lower chances of returns, better/clearer item descriptions, better packed to reduce in-transit damage or change the type of item you're selling all together that has less, rare or no chance of being returned.
Thanks for the reply. Fees are all similar (AMEX excepted). We've bent over backwards over 25 years with exhaustive descriptions, exacting packing, and no-quibble refunds. But we sell high-end guitars online, which can be returned for any number of player preferences. We try to make clear that we can't refund CC fees, but these are high-dollar purchases, and customers are sometimes more than miffed that they can't get full refunds from the processors on return items.
Paypal was exemplary in this regard, now they're just another vulture. But we have to depend on them, and they know it, hence the abusive policy.
BTW: To put it in perspective, many of our customers are paying up to $300 or more in credit card charges on a single purchase here. This is a very significant hit when an item needs to be returned.
PayPal can kiss it goodbye with this new policy. USPS shipment gets lost in transit and a refund is issued? They don't care. Buyer screws up shipping info and just gives up on correcting it, so an invoice must be refunded? They don't care.
The bottom line is this about PayPal and their new policy.
THEY DON'T CARE
Just increase all your prices on eBay by 5% and then place this at the top of your listing:-
PAY with BACS and your TOTAL BILL will be REDUCED by 10%
One of the reasons I use paypal is the refund of fees, when a buyer changes his/her mind and you like to accomodare the request. Now you have to count your loss or ask people to pay with direct debit into your bank account. Buyers expect the full payment returned, except when told before their purchase that a fee will be incurred if they ask for a refund. I would say that its ok to use paypal for small amounts, but I would in case of large amounts use my bank if the transaction is national.
Like many here, we are also going to face a burden on this policy change. We ship parts around the world, and customers pay a deposit until their core part arrives back to us - if it's damaged we have to use the core deposit to replace. If it's ok we refund it. These deposits can be hefty, so the fees are not peanuts.
Speak your mind and get in touch with the leadership at PayPal (contact info is readily available on various sites). Hope these so-called geniuses realize the major impact this is going to have on merchants (and others), and will significantly impact everyone's bottom line. Not a smart move.
I hope PayPal factored in the loss of the majority of eBay sellers who would have still offered PayPal as an option alongside eBay's managed payment before this silly policy/theft. They are no longer the only game in town at this point.
I had intended to stick with PayPal permanently, but they were determined to make me sever all ties. They would have gotten a fair amount of the pie, but now they get no pie at all. I am 1 seller, but multiply that by a million or more and that is a very very substantial loss for PayPal. When they come back holding their hat in their hands offering apologies after they realize what a monumental mistake this policy is, it will be too little too late if they go forward with this on October 11th.