@ukracer
Simply because PayPal changed their policy on refunds, no matter the reason. The fee is no longer refunded. For the UK, this change went into effect in early March. Whatever you require on the course of your business is your choice though.
If you can, you should send customers PayPal buttons or email urls using the paymentaction=authorization variable on step 3 of the button tool or set up your own website and use authorization and capture (A2C) integration.
A2C is a method when authorization and capture steps are separated instead of both occurring at once by default leading you to receive payment immediately, so you can screen your customers first with the 'authorization' and then choose to 'capture' the funds or void the authorization at a later time if a customer's order if they don't meet your requirements.
https://developer.paypal.com/docs/admin/auth-capture/
If you're selling through a marketplace, then you might not have a choice. Will have to think outside the box or change your policy. Like self-insure, put aside a percentage from each sale to cover disputes and liabilities/shrinkage which is something major retailers have dealt with since forever and that we as small to micro businesses or even new to selling, individually, need to contend with.
Kudos & Solved are greatly appreciated. 🙂
