Paypal and retaining their fee in case of a refund is crazy!

[OR_COUTURE]

So I had to refund a buyer $1195.

I noticed my bank account was drafted for the full amount. I emailed paypal and called them the next morning.

I talked to a manager and expressed my frustration with them having reinstate this poor decision.

Then I got a dry email answer as well.

I'm sharing what I wrote paypal after they asked for my "understanding" of this matter:

[sharpiemarker]

@OR_COUTURE 

If buyer reneged on an order, deduct it from refund. If refund was due to your fault refund in full. But PayPal is adjusting their policies to align with industry standards, web search "do cc merchants refund fees".

PayPal users have been spoiled by PayPal not refunding fees for a long time, the perk is over. It was inevitable. Early on they refunded all the money, then just the variable rate, and now...they're keep the whole fee.

[OR_COUTURE]

sharpiemarker , quoting paypal talking points is not appreciated. A simple research would show the "aligning with industry standards" is pure BS.

And you can't deduce it from eBay. When you cancel you have to issue a full refund. When you refund on eBay for a return as long as the item is in same condition you can't deduce and they cancelled their restocking fee. No way around it.

Paypal lost their minds if they think this is a good move for them. Very bad move to hurt small businesses and small merchants who are supposed to take those fees now as a loss.

I get paid you process you get a fee.

I don't get paid (a refund was issued), you can't get a fee for a transaction which was reversed.

Simple.

Everytime I will issue a refund I'll feel paypal is stealing from me, period. No one is 'spoiled'. We pay high fees over the years. No one has given us gifts.

And please, stop this disinformation about "industry standards". It's just not true. And very very upsetting. I'm not ever sure it's legal.