NEW PAYPAL POLICY DOES NOT REFUND SELLER'S FEES IN CASE OF RETURNS / FREE RETURNS. WHAT WE DO ?

[ancientcoins.market]

Hello folks.

Did you know ?....  Paypal new policy does not refund seller's fees in case of a return / free return ??

HERE IT IS :

Amendments to the PayPal Account User Agreement. We’re changing how we treat refunds. If you refund (partially or fully) a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees you originally paid as the seller will not be returned to you.

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What do we do now  ???

If paypal doesn't refund seller's fees and a buyer forces a return on eBay, all sellers will start losing big money.

Any ideas folks ???

[fern*wood]

Another cost for sellers on returns is the FVF on shipping that ebay doesn't refund on remorse returns.  It adds up, so if you aren't covering it in your shipping costs, then it will be out of your pocket. 

[pburn]

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@ancientcoins.market wrote:
Yes May 7 for refunds and May 29 for user's agreement.

Topic is about non refundable sellers fees for returns.

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Right. I understand the topic. The "non refundable sellers fees for returns" are what I'm speaking to.

It's a very important change, so I just want to make sure everyone is aware that the "non refundable sellers fees for returns" did not take effect on March 29, 2019. It will take effect on May 7,  2019.

All the changes in the PayPal announcement are to the User Agreement. The following changes to the User Agreement took place March 29:

--changes that will affect consumers who want to hold and use balance with PayPal

--changing the time period for providing advance notice about important changes to the PayPal Account User Agreement to at least 21 days

--clarifying how and when currency is converted

--similar changes to the PayPal User Agreement for Business Accounts and an Amendments to the Electronic Communications Delivery Policy

The following changes to the User Agreement will take effect May 7, 2019:

--removing the flat rate pricing for sending money to friends and family members

--changing the currency conversion spread

--changing how refunds are treated

[pburn]

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@tools* wrote:

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I don't know of any merchant accounts that don't refund the transaction fee when a refund is issued to a cardholder. In fact, Visa, Mastercard, Amex, and Discover likely prohibit such a practice in their contracts.

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Let me make sure I understand your statement. You're saying when a merchant refunds a customer, credit card issuers refund the transaction fees?

Is that what you're saying?

[tools*]

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@pburn wrote:

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@tools* wrote:

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I don't know of any merchant accounts that don't refund the transaction fee when a refund is issued to a cardholder. In fact, Visa, Mastercard, Amex, and Discover likely prohibit such a practice in their contracts.

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Let me make sure I understand your statement. You're saying when a merchant refunds a customer, credit card issuers refund the transaction fees?

Is that what you're saying?

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No, why would I say that? That doesn't make any sense and would never happen.

[mam98031]

You may find some information on this thread useful.

https://community.ebay.com/t5/Selling/PayPal-FEE-CHANGES-as-of-May-7-2019-You-should-Know-about/m-p/...

[myjunqueyourtreasure]

--removing the flat rate pricing for sending money to friends and family members

I wonder what that means being as there's no charge to send F&F from a PP balance right now.

[pburn]

I paraphrased it for the sake of brevity and because it was not germane to the OP's topic. Here's the complete verbiage:

"We’re removing the flat rate pricing for sending money to friends and family members who have PayPal accounts in a country other than the United States and introducing a new variable fee of 5% based on the amount you send with a minimum of $0.99 and a maximum of $4.99 per transaction. We’re also removing any variation depending on the recipient’s country. "

[myjunqueyourtreasure]

Thanks

[pburn]

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@tools* wrote:

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No, why would I say that? That doesn't make any sense and would never happen.

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Then can you clarify this statement for me?

"I don't know of any merchant accounts that don't refund the transaction fee when a refund is issued to a cardholder."

Did you mean the opposite? Perhaps:

"I don't know of any merchant accounts that don't refund the transaction fee when a refund is issued to a cardholder."

[pburn]

Yeah--my bad. I should have paid more attention to the gist of it. 😞

[thevintagesilvershop]

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@ancientcoins.market wrote:

Hello folks.

Did you know ?....  Paypal new policy does not refund seller's fees in case of a return / free return ??

HERE IT IS :

Amendments to the PayPal Account User Agreement. We’re changing how we treat refunds. If you refund (partially or fully) a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees you originally paid as the seller will not be returned to you.

--------------------------------

What do we do now  ???

If paypal doesn't refund seller's fees and a buyer forces a return on eBay, all sellers will start losing big money.

Any ideas folks ???

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I don't like this, nobody does.  But like your landlord, your electric company, the people who supply your ink and paper, your internet provider, etc., etc., you can expect costs to go up and you have to adjust your business model/pricing.

Everyone needs to look at their numbers.  I looked at my numbers from last year.  I sold about 750 items.  I had about $916 in returns/reimbursements/shipping refunds/other refunds.  With the new PP policy, I would lose around $28 a year for the non-refunded fees.  That's about 4 CENTS per transaction where I have to either adjust my pricing or add to my handling fee.

Hate the added cost, but everyone look at your numbers to see if you need to adjust pricing/handling fee, whatever. 

[tools*]

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@pburn wrote:

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@tools* wrote:

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No, why would I say that? That doesn't make any sense and would never happen.

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Then can you clarify this statement for me?

"I don't know of any merchant accounts that don't refund the transaction fee when a refund is issued to a cardholder."

Did you mean the opposite? Perhaps:

"I don't know of any merchant accounts that don't refund the transaction fee when a refund is issued to a cardholder."

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No, it's always been standard practice for a merchant account provider to refund the transaction fee when a refund is issued to the customer by the seller.

[parttimepeddler]

It doesn't matter. If you ship it and the buyer doesn't want it here is how it will end up. They will claim there is a problem with it and not only will you lose the PayPal fees but also the shipping fees both ways. I'm sooooo done here. Either Ebay finds an alternative to forcing PayPal on us, I'm closing my account. Ive taken enough of a beating. 

[mam98031]

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@parttimepeddler wrote:

It doesn't matter. If you ship it and the buyer doesn't want it here is how it will end up. They will claim there is a problem with it and not only will you lose the PayPal fees but also the shipping fees both ways. I'm sooooo done here. Either Ebay finds an alternative to forcing PayPal on us, I'm closing my account. Ive taken enough of a beating. 

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Managed Payments.  You can ask to join the program.

[atifaslam6]

Hi,

I don't really understand how that works, I'm a newbie seller with a paypal account. I only know that ebay takes a 10% fee on the transaction, and paypal takes ~5% fee, but that is deducted from the buyer's transaction, say he paid $100, I will receive ~$95 and the ~5% is paypal fees, but I gave my item away in return for $95, making me lose $5 in fees.

If buyer returns the item, wouldn't the $95 transaction bounce back to the buyer and he'd be the one to lose the $5 fees? How will I as a seller make a loss on that, sorry for not being able to comprehend.