zappos.com Refunds on Returned Merchandise

[MelMel83]

This is to communicate that Zappos.com is holding refunds and blaming the banks who made the transactions.  After over 2 weeks, I finally called Zappos and as I suspected, they blamed PayPal for my not receiving my refund. They said it is a "...known glitch with PayPal's service".  I made it very clear to them that I have never had an issue with PayPal's service.  I receive refunds from many vendors and the funds are almost immediate if not within 24-48 hours.  It has been over 15 days with Zappos.  Upon further research, I discovered this is an issue with hundreds of their customers.  They hold the funds and it's not until you call, do they proceed with expediting the refund.  I have now made an official complaint about Zappos with the Federal Trade Commission (ftc.gov) and would suggest that anyone else having the same issue, issue a case as I did.  I wish I could let PayPal know at the higher levels what Zappos is doing to "blame" PayPal for the tardiness of my refund.  Am I concerned I'll never get my refund?  No.  I could easily set up a "fraud" case with PayPal and get my refund almost immediately, but decided this needs to be handled from a different direction for now. 

[kernowlass · Accepted solution]

@MelMel83 

Pending refunds can only happen for two reasons.

1. The seller has issued a refund from their bank account which takes time to process.

2. You funded the payment to the seller using bank transfer. What PayPal do here is credit the recipient on your behalf (so there is no delay in despatching your item). Then if you receive a refund in the meantime they are unable to issue this until the original bank transfer completes.

https://www.paypal.com/cshelp/article/where-is-my-refund-help130

[MelMel83]

Thank you for your prompt guidance. I do fully understand that refunds have to follow a process and the process takes some time.  However, in this case, all I was trying to communicate is that Zappos.com is wrongly "blaming" PayPal for their tardiness.  The refunds via PayPal have been very efficient and I've had a PayPal account for years with no complaint.  I'm letting everyone know that when they are frustrated with Zappos refunds and Zappos "blames" PayPal (or whatever bank made the payment), they are passing the buck.  This is a Zappos problem, NOT PayPal.  Thanks again for your courteous response.

[MimiBeth23]

Nov 1 return arrival for my sneakers at Zappos- as of Nov 22 no refund…legally they have 30 business days…interesting how companies so quick to take the funds, process or not. And yes, they seem to want to blame PayPal or institution. As was stated previously, seems to not be an issue with other companies and PayPal. 

[MelMel83]

To reiterate what I've already said:  File a case with the Federal Trade Commission "on ZAPPOS" (NOT PayPal).  Zappos is playing a game.  What's hilarious is I said the words "Federal Trade Commission" to the call center and like "magic", my refund appeared the very next day (if it had appeard on the same day, then it was a coincidence).  I do NOT ever abuse the system.  Filing a case with the FTC is something I have never done.  But I have a career in the financial world and I know how things are supposed to work.  This is a Zappos issue, not PayPal.  If you have already confirmed receipt of the returned item, give Zappos (and PayPal) time to process (eg. 5 days).  If you still don't see your refund, call Zappos and "hear" their excuse.  Wait one more day to see if they send you the refund.  If they do not, then "case with FTC" will get their attention.