Paypal Fees for Refunds

[Hobi1202]

According to the new Paypal user agreement effective May 7th, paypal will no longer credit you back the fees when a customer gets full refund or even cancels an eBay order before the item is shipped.  

Does anyone have any suggestions on how to handle this financially?  I sell for a business and this is going to throw or net deposits off on a regular basis.

[archtops]

Thanks for the reply. Fees are all similar (AMEX excepted). We've bent over backwards over 25 years with exhaustive descriptions, exacting packing, and no-quibble refunds. But we sell high-end guitars online, which can be returned for any number of player preferences. We try to make clear that we can't refund CC fees, but these are high-dollar purchases, and customers are sometimes more than miffed that they can't get full refunds from the processors on return items.

Paypal was exemplary in this regard, now they're just another vulture. But we have to depend on them, and they know it, hence the abusive policy. 

[archtops]

BTW: To put it in perspective, many of our customers are paying up to $300 or more in credit card charges on a single purchase here. This is a very significant hit when an item needs to be returned.

[BuybackDude]

PayPal can kiss it goodbye with this new policy. USPS shipment gets lost in transit and a refund is issued? They don't care. Buyer screws up shipping info and just gives up on correcting it, so an invoice must be refunded? They don't care.

The bottom line is this about PayPal and their new policy.

THEY DON'T CARE

@PAYPAL

[SGW55]

Hi,

Just increase all your prices on eBay by 5% and then place this at the top of your listing:-

PAY with BACS and your TOTAL BILL will be REDUCED by 10%

[apangburn]

AGREE - We urge PayPal to retain their previous customer friendly return policy asap. I thought it was a joke when I read that PayPal no longer refunds fees for refunded payments that is ridiculous especially if the payment doesn't go through and is held and has to be refunded because of PayPal since it doesnt allow you to ship an order in PayPal when the shipping payment is being held along with the order payment... PayPal is literally charging me fees on their mess ups and even charging me a fee when the payment doesnt go through cause of something on their end. How is this not illegal? I dont understand PayPal anymore I've been with them over a decade and a half but this is ridiculous they have turned into scam artists and appearantly no one is paying attention to it cause they are getting away with it. Nothing ever works in PayPal anymore I'm always in chat or on the phone with them for hrs every week because of some new glitch and come to find out they are charging me for payments that dont even go through!? what the heck someone needs to turn these guys in this is so beyond unacceptable I dont know how they are getting away with this legally or ethically. so wrong!!! I really just dont understand how PayPal has turned into some monster that scams people. I dont even want to deal with PayPal anymore but I'm forced to. Not even sure why I'm writing this cause PayPal doesnt care. Only writing this for that 1% chance that enough customers complain about it so they change it back. PayPal used to be very user friendly and easy to use... now their customer service reps dont even know what's going on.

[Elfent]

PayPal scammed me too! PayPal blocked the recipient from transferring the funds to their bank account- error messages, this that, you name it!! Recipient sent money back to me using REFUND feature but PayPal still felt entitled to hold on to MY MONEY “FEES” after a transaction that PAYPAL blocked in the first place! &@@## scammers!!! PayPal can come kiss where the sun don’t shine!!:(

[Miekesfinds]

One of the reasons I use paypal is the refund of fees, when a buyer changes his/her mind and you like to accomodare the request. Now you have to count your loss or ask people to pay with direct debit into your bank account. Buyers expect the full payment  returned, except when told before their purchase that a fee will be incurred if they ask for a refund. I would say that its ok to use paypal for small amounts, but I would in case of large amounts use my bank if the transaction is national.

[PlugGuy]

Like many here, we are also going to face a burden on this policy change.  We ship parts around the world, and customers pay a deposit until their core part arrives back to us - if it's damaged we have to use the core deposit to replace.  If it's ok we refund it.  These deposits can be hefty, so the fees are not peanuts.

Speak your mind and get in touch with the leadership at PayPal (contact info is readily available on various sites).  Hope these so-called geniuses realize the major impact this is going to have on merchants (and others), and will significantly impact everyone's bottom line.  Not a smart move.

[AlbanyDavid]

I hope PayPal factored in the loss of the majority of eBay sellers who would have still offered PayPal as an option alongside eBay's managed payment before this silly policy/theft. They are no longer the only game in town at this point.

I had intended to stick with PayPal permanently, but they were determined to make me sever all ties. They would have gotten a fair amount of the pie, but now they get no pie at all. I am 1 seller, but multiply that by a million or more and that is a very very substantial loss for PayPal. When they come back holding their hat in their hands offering apologies after they realize what a monumental mistake this policy is, it will be too little too late if they go forward with this on October 11th. 

[SOEKS1]

eBay is a particularly good example of the damage this policy will do to sellers.
I read in a professional eCommerce magazine recently that due to the European community's 14 day return with full refund policy to include return costs, a staggering amount of clothing buyers will place orders for several sizes to ensure they get their exact size. They then return the rest. Ouch!!!