What is the correct way to process a refund after the 60 days has passed?

Stacycmc
New Community Member

Hello, the business I work for sells items on preorder. The item may not actually release however until a year later in some instances.  It's not uncommon that before release some customers want to cancel their preorder and get a refund, which in many cases can be well after the 60 day window.  In these instances, despite Paypal only allowing the "no fee" refund to occur within 60 days - what is the appropriate way to process the refund?

 

To clarify also, I already know that in this case the "send money" feature has to be used.  I am more interested in understanding what is Paypal's approved method for our business to process the refund through "Send Money"?   If we use the "goods and services" option, the customer will be hit with seller fees and possibly have Paypal put a hold on their refund until they confirm the "seller" (i.e. customer requesting the refund) has mailed the goods and there's some sort of receipt confirmation or tracking provided - or they have to wait up to 30 days or so (don't recall the exact amount). This seems terrible to have a customer pay seller fees to get a refund and also possibly have Paypal hold their refund to confirm the goods were mailed (as obviously there's no goods).

 

On the other hand, we sell internationally and we don't want Paypal to flag our activity for using Friends and Family either - even though in this instance we are NOT selling goods or services, just trying to refund the customer and hopefully not have their money held or cause them to pay seller fees for no reason.  

 

Can someone clarify what method is "Paypal approved" so neither the customer nor our business will be flagged for unethical behavior or using friends and family incorrectly or something.  My business does not mind paying the seller fees - when we sell an item.  We are also ok if the seller fee is not refunded when we process the refund (as we understand it's after the 60 days) but we do not want the customer's refund to be held nor for them to be charged fees either.  Sorry for the question, but all I can ever find on this is to use the "Send Money" option, with no detail on whether "goods and services" or "friends and family" should be used however. THANKS!

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sharpiemarker
Esteemed Advisor
Esteemed Advisor

@Stacycmc 

 

First time I heard about the no fee refund within 60 days of payment. As per PayPal user agreement, sellers generally have 180 days to issue a refund from within the original payment. Just click the transaction you want to refund and click “Refund this payment” button. It is free to refund but the original fees paid is not returned. Beyond the 180 days from date of payment, the refund have to be issued by ‘friends and family’ method.

 

How do I issue a full or partial refund?


Kudos & Solved are greatly appreciated. 🙂
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