PayPal Fees on Refunds
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Hi, I'm building an e-commerce store and before I launch, I made some test on the checkout process on my Site. Before I ask my question, I want to share the process I untertake:
Note: I made the test on Live Environment (not Sandbox)
I have a product priced at $24.99. I made a test coupon that gives $23.99 discount so that the total cost of my order is $1.00. So I added the product to my cart, apply the coupon, then proceed to checkout. I paid the order thru credit card.
Everything works well. Paypal sent confirmation on both party (customer email and merchant email). I checked my Transaction History and here is the summary:
Starting PayPal Balance | $0.00 |
Gross | +$1.00 |
Fees | -$0.34 |
PayPal Balance after Transaction | $0.66 |
So I received a total of $0.66 straight to my PayPal balance
Next, I tested if the refund system works. So on my website, I refunded the order via PayPal. The refund was successful and I got the following on my Transaction History:
PayPal Balance before Refund | $0.66 |
Refunded to Customer | -$1.00 |
Fee reversal from Paypal | +$0.34 |
PayPal Balance after Refund | $0.00 |
Now for my question. Are the Fees refundable as well? Base on this Documentation, any fees that were charged when the original payment was received are retained by PayPal. But based on the conducted test, the Fee has been refunded as well.
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