PayPal no longer returns their fee when refund is sent?

phreaktor
Contributor
Contributor
“We’re changing how we treat refunds. If you 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 you originally paid as the seller will not be returned to you.“ So basically they are receiving fees for nothing? Does this extend to Cancelled transactions on eBay?
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9 REPLIES 9

kernowlass
Esteemed Advisor
Esteemed Advisor

@phreaktor 

 

They are charging you for providing you with the service of processing a payment from your buyer to you when you sold your item.

The fact at some stage you had to issue a refund does not mean that they did not provide that service in the first place.


Advice is voluntary.
Kudos / Solution appreciated.
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phreaktor
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Contributor
“Does this extend to transactions cancelled on eBay?”
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KeeperChrome
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I just had a eBay buyer purchase/paid..request cancellation/refund and was refunded.

All occurred within 15 minute time frame...

I was still charged transaction fee and lost $20.00...for nothing

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phreaktor
Contributor
Contributor

That is such BS.  It doesn't cost them more to transer an extra digit.  For cancelled transactions, it should be a flat fee or less than 2.9%.  

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KeeperChrome
Contributor
Contributor

I knew about the policy change.I was wondering if there was a time limit of cancellation/refund , say ..in less than an hour and transaction would be as it never happened , like Buyer Remorse in an hour.
Unfortunately...Now I know.
I will be placing a notice in all my listings that due to Paypal Policy change,Sellers no longer receive Transaction credit for Buyer Remorse ,even upon immediate refund and that I will hold the funds for the maximum allotted time allowed by ebay which is ..3 days to respond to Buyer Cancellation Request and 10 days to issue the refund..a total of 13 days.
Since the Cancellation is initiated by the Buyer there is no negative actions against the Seller.

"When a buyer cancels a transaction, they can't leave negative or neutral feedback or low detailed seller ratings for you."

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phreaktor
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Contributor
That’s a GREAT idea. I just remembered I had a so called “unauthorized transaction” for $500 ebay sale today opened directly on PayPal Now I’m wondering if I will take the hit 1. Because I accepted the dispute and refunded or B. Because for whatever reason the transaction wasn’t canceled after this on eBay, so having forgotten about this stupid policy change, I did it...
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phreaktor
Contributor
Contributor
Looking at the dispute, it’s still Under Review even though I refunded the full amount including the original fee. It doesn’t look like the additional Refund fee was taken. I don’t know if it’s going to update and take it when the skids puts is closed or what. This case was opened a few minutes after the purchase. Germany buyer that signed up today. 0 Feedback of course. I guarantee it wasn’t an “unauthorized” purchase. They likely misunderstood the listing description and backed out in a way where I’d be forced to refund (even though I would if they just asked). Shady.
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phreaktor
Contributor
Contributor

Wait a minute?  What the heck is this?  It was opened as an Unauthorized Transaction, but its says in the details that it's "Not as Described" and that I should wait for the buyer to return it for PayPal to process the refund??  I haven't even shipped them anything.  Time to get on the phone smh...Dispute.jpg

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KeeperChrome
Contributor
Contributor

I stopped selling Internationally years ago.There are "oddities" in the Seller protection for Merchants and Seller Protection varied from different countries.

I was in the Harley Davidson Industry for 30 years.I sell Antique Harleys and Rare parts and I mostly have to deal with Overseas buyers who have US ebay accounts with location listed in other countries , but drop ship or 3rd party in the US to a confirmed PP address then fill a container and ship overseas so it can get complicated and there are a lot of scams.
I once had an unauthorized purchase made through my PP account...$5,000.00 for shoes from China,purchased in France by my USA Paypal account(Bank acct backup).My bank caught it,transaction was cancelled,then the same day PP refunded the entire amount so I showed +$5,000.00.
When I contacted PP multiple times they said it was correct,even though I argued I shouldn't have been refunded as the transaction was cancelled and no money was exchanged.This balance stayed on my PP account for over 90 days and I instructed everyone to never use the balance to pay for anything.One day the account was finally corrected and the +$5,000.00 disappeared.
So I believe they eventually found their error,probably a quarterly audit etc.

Read what is not covered by seller protection......"Not as Described" and "Claims file directly through ebay account"
What isn’t covered by Seller Protection?
https://www.paypal.com/us/webapps/mpp/security/seller-protection

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