Upcoming changes to our PayPal legal agreements: PayPal will NOT return original processing fee.

CdnPalGuy
Contributor
Contributor

I just received this email notice from Paypal that there are going to be making changes to the Agreements for users in Canada. When I clicked on the link provided I noticed one of the changes states they will no longer return the original processing fee when a return/refund has been provided to a customer. So in the rare cases when a customer does return our product I will refund them 100% of the cost but now PayPal will no longer refund me the original processing fee. This doesn't sit well with us seeing we have very few returns why are we being penalized!

 

Here is the notice when you click on the link.... (see RED text).

 

Do you feel these changes are fair????? We need to voice our opinion now and let PayPal know!!!!

 

AMENDMENTS TO CERTAIN CANADIAN PAYPAL AGREEMENTS

We are updating the PayPal agreements listed below for all PayPal users in Canada. The changes described below will go into effect on March 20, 2020, unless otherwise noted. There is no action needed from you, as the changes will occur automatically on the effective date above. In the event you would prefer to decline the changes and close your account, you can do so prior to the effective date and the changes will not apply to you.

Amendments to the PayPal Account User Agreement for Sellers

  • We are clarifying how merchants must treat PayPal marks and payment methods offered at points of sale.
  • We are requiring that merchants publish customer service information, including at least one email address or customer service URL, and a telephone number, which must be readily accessible for review by merchants’ customers.
  • We are clarifying that merchants must cooperate with PayPal’s reasonable requests for financial statements and other information in a timely fashion. 
  • We are establishing that if merchants refund (partially or fully) a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees originally paid by the merchant will not be returned.  This change will become effective on May 19, 2020.
Login to Me Too
2 REPLIES 2

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@CdnPalGuy 

 

Use PayPal authorization to capture method: 

https://developer.paypal.com/docs/paypal-payments-standard/integration-guide/authcapture/

 

The payment won't be captured right away and in case the buyer changes mind after they place an order, you just void the transaction and release the funds back to buyer. They might just charge the 30 cents but at least not the whole fee. If payment is captured, you will be charged the entire fee on the refund of course when the new policy kicks in.


Kudos & Solved are greatly appreciated. 🙂
Login to Me Too

CdnPalGuy
Contributor
Contributor

Thanks for your reply. In our case I don't think this would work as we have to ship the customer our product and they don't often decide to return the item until after 15-30 days.

Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.