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Paypal Fees for Refunds

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New Community Member

PayPal SELLER FEES - gotcha

With the new policy published by Paypal for Sellers there is an unexpected gotcha.

 

If the buyer has multiple Credit Cards on file and of course Paypal has a "DEFAULT" pre-selected and user completes the transaction.

Short time later user realizes they picked the wrong CC and request the refund from Seller, which Seller obliges, which is where the GOTCHA happens.

The Seller is charged the FULL TRANSACTION FEE for this honest mistake.    How is that fair to Seller? 

If this is the strategy PayPal is banking on to thrive, the SELLERS should switch to other means, ie.  Square ...

This is totally not right!!!

 

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New Community Member

Re: PayPal SELLER FEES - gotcha

Just lost $21 transaction fee for a refund due to buyer's changing mind within 30 mins. I am expecting huge transaction fees to be eaten by paypal in refund for this coming holiday season. I really hope new ebay payment system open to public soon.

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Contributor

Re: PayPal SELLER FEES - gotcha

One of my issues is that we offer free delivery within metropolitan France (the company is based in France) and we ask anyone outside of France to use our form for requesting shipping costs to their country. Despite a flashing warning at the top of our order page about this, people outside of France kept on placing orders which we promptly refunded. That was fine while PayPal also refunded the transaction fee.

Since this new policy, we put in place a confirmation page before being able to reach the order page. It basically explains that our prices only apply to metropolitan France and to click on "YES, I live in France" or "No, I need a shipping quote". The page also warns them with a large WARNING sign that should they click on the YES button and place an order for delivery outside of France, we will refund their order immediately less PayPal's transaction fees. You would think that would be enough to put them off but no, some people still try their luck and then kick-up a stink when they lose the amount PayPal kept.

If this ridiculous policy is harming sellers, it is having an even worse effect on consumers and believe me when I say good news travels slowly but bad news travels like wildfire.

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Contributor

Re: PayPal SELLER FEES - gotcha

I'm here to complain too.  So much money lost for canceled orders for no reason.  The dreaded I want this before Christmas even though I ordered after your deadline and ect.  Greedy Greedy BS, and I will abandon PayPal at first opportunity with this dumb decision.  

 

Complaining here is not enough, call your representatives.  

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Contributor

Not getting Paypal fees back after refunding buyers?

Hi guys, I noticed that I didn't get Paypal fee back after the refunds I sent to buyers in Dec 2019, it this something new? Before, Paypal only charged $0.3 per refund transaction but they are now taking it all? Bit silly....

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Esteemed Advisor

Re: Not getting Paypal fees back after refunding buyers?

@CharlieZheng 

 

Last update to this was in Sep 2019 so its fairly recent.

 

Product Disclosure Statement 

 

Commercial Transaction refund fee

 

18.16 If you issue a refund (partially or fully) of the Commercial Transaction payment, there are no fees to make the refund, but we will retain the full amount that you originally paid us. Your buyer’s account will be credited with the full or partial refund amount of the Commercial Transaction payment and your account will be debited with the full or partial refund amount.

 

18.17 The amount of the refunded payment will be deducted from your PayPal account.

 


Kudos & Solved are greatly appreciated. 🙂
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Contributor

Re: Not getting Paypal fees back after refunding buyers?

Still the most irrational and unfair practice in the e-comm world.  We're leaving as soon as we line up a more fair option.  There is no reason PP can't simply give us a waiver on this for 2-3-4-5 days if a customer is going to cancel.  Makes zero sense, but PP is after the buck for themselves, not for us as merchants who have funded their phenomenal growth the past 20 years.  We're getting stung every day on this mess, and it's more than just a few pennies.

 

WAKE UP PayPal.  Maybe as they lose more and more customers they'll consider a change.  Totally sucks.

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Contributor

Re: Not getting Paypal fees back after refunding buyers?

Just a thought...
Although it will be up to online retailers using PayPal's service to implement their own system to make customers aware of PayPal's refund policy, I'm thinking that eBay should make it part of their T&C to warn all buyers that, in the event of a cancellation or refund demand, PayPal's transaction fee will not be refunded. Therefore, neither eBay nor the seller can be held responsible for the loss of this fee. Should the buyer not accept this policy, he has the right to take up his case directly with PayPal.

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Contributor

Re: Not getting Paypal fees back after refunding buyers?

Some update.

 

Got in contact with Paypal support (finally after 1 million attempts), they told me this:

"Hello. As per notifications sent out in September 2019, PayPal is no longer refunding our processing fees when a payment is refunded."

https://www.paypal.com/au/webapps/mpp/ua/useragreement-full?locale.x=en_AU#transaction-fees

 

This is robbery, and totally unfair, cancellation is quite normal when selling things online and sellers may lose tons from this.

I'm now considering a law suit.

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Contributor

PayPal refund policy change

So im out PayPal not only is now making sellers keep money in your account interest free! The new policy in refunds is if it's not in your PayPal account you cant do it. I could have thousands on my linked bank but it dosent matter. Also if I want my cash I need to pay 1 percent or wait up to 5 days to get my money. And finally they are keeping the initial 3 percent they take from your sale if you have to refund they keep that money. 1000 positive feedbacks on Ebay without a negative in a year if selling a few hours a week make overv 22k TOP rated plus seller. Not anymore. ITS TIME TO SHORT PAYPAL STOCK. Ebay told me many many sellers are complaining to them. PayPal you just jumped the shark.