Our business frequently offers partial refunds to customers whose needs change. And less frequently offers full refunds. In all these cases we feel our payments processor should refund back the fees they charged in a modified transaction. Our solution going forward will be simple: we shift the cost to the customer. If they request a refund, they receive what they paid minus the fee that PayPal no longer refunds. We make this clear that the incomplete refund is owing to PayPal's rules, not ours. My guess is other sellers will do this as well. And my added guess is that this will lead to a flood of buyer disputes, which will be costly for PayPal to adjudicate. Perhaps then they will see this decision isn't as smart as they originally thought.
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