How to cancel payment ?

[Puppavince]

HI guys,

I just sent 2,000$ to someone but I must have used the option "send payment for an item or service" instead of "sending to a friend"... The recipient is now telling me that he has to pay Paypal fees of 95$ from the money I sent. So instead of getting the full amount, he is now missing 95$ if he accept the payment. On his side, the money still appears as "on hold" for some reasons but I don't have any option to cancel the payment on my side as it is not showing as pending. We would liek to cancel this payment to make a new one using "sending to a friend" to avoid having to pay 95$ of fees.

From what i've read in the FAQ, since that payment is not pending, I can't cancel it. My options to cancel it is to either ask the recipient to send me a refund or to ask the recipient not to claim the payment for 30 days and then I will automatically receive a refund. What I want to know is what happens if the recipient send me a refund manually? Will I get the full amount sent i.e 2,000 $ or will I only get 2,000 - 95$ fees? And same question in case we decide not to claim the payment for 30 days and that the payment is automatically sent back to me, will I get the full amount or minus the fees ?

Thanks guys!

[kernowlass]

@Puppavince 

A friends / family (or gift payment) is intended as a transfer of funds from family or friends to one another. For this reason, there is no processing fee when payment is made with bank or PayPal balance.
However as it is a gift payment, there is also no buyer protection as no goods or services should have been exchanged.

If he was not a close mate or family member you should never use that option as it enables the seller to evade paying his Paypal fees and negates your buyer protection at the same time.

You would also not be able to open a dispute (apart from one citing an unauthorised transaction), which would be automatically closed as you did authorise the initial payment.

Be careful as using that option for purchasing goods is against Paypal rules and can lead to account limitation.

[Puppavince]

Hi Kudos,

Thank you for your input. I understand what you just mentioned, but the person I sent the money is actually my friend and there was no goods/service exchanged between us, I just owed money to that person, so I should have chosen the "send friend or family" option.

What I want to know is will I get a 100% refund if my friend initiate the refund or will the 95$ Paypal fees be lost?

Thanks

[kernowlass]

@Puppavince 

My user name is kernowlass, kudos is what you tick to say thank you for any help !

However any fee a recipient pays to receive a goods/services payment is unfortunately not returned as part of any refund made.

Paypal keep the fee for processing the original payment and then the refund.

[Puppavince]

Thank you Kernowlass, however, are you sure of that? As my friend made a simulation of refund and if he puts the full amount for refund, it shows Amount refunded by you: xxxx and then there is also another field showing: Fees refunded by Paypal: 95$. SO it seems that paypal will pay the fees back in case of full refund... But I would just like to get confirmation from someone here before to go forward.

[PayPal_RachelK]

Hi @Puppavince

Welcome to the community!

Yes, this is correct. If the receiver of the payment issues a refund, the fee is not refunded. The amount of the refunded will be deducted from their PayPal account. For more information, simply click here. 

I hope this helps!
 

- Rachel 

[Puppavince]

HI Rachel,

Thank you for your input, however, I want to inform you that we did the test with my friend and he did initiate the refund and I got 100% back including the fees.

[kernowlass]

@Puppavince 

The moderator that replied to you is a senior paypal employee and were giving you the facts.

Yes you would get a full refund for a goods/services payment as its your friend as the receiver of the initial payment that pays any fee.

The funds would be returned in full and if not enough in their balance the remainder would be taken from their bank account or other funding source ie card (country dependent).

If you want to look at the FEES page or the POLICIES page you will see that for goods/services payments a refund is NOT returned as part of any refund given.

However if it was a friends/family payment then yes there is no fee involved on a refund.