PayPal fee extortion

[welike2buyandsell]

when will the class action lawsuit start against PayPal for their new "fee extortion" policy that is in effect?

[buyselljack2016]

Don't see how that would be possible.

PP states what their policies are.

We either agree to them, or we choose not to use PP.

Not that I agree, or disagree with what they are doing, but I see no way that it would be illegal for them to do what they have chosen to do.

[dirk12955]

When you click "I agree" I believe you forfeit your right to sue. Maybe you could sue, But what's the point?


".........I agree"

[alcoforever]

The lawsuit will start on the twelfth.   Of never.

[theteamsetguy]

Paypal’s fees are that much different than other payment processors like Square, authorize.net, EBay’s managed payments, Amazon’s payment services, and etc. The payment processor gets a very small percentage of the processing fees. Most of it goes the the credit or debit card issuing bank and Visa, MasterCard licensing fees. How do you think the cash back, rewards, and frequent flyer miles card users get are paid for? The processing fees merchants pay.

[silvercrown90]

True, but you get 100% of your fees back from Authorize.net and the other processing fees if you issue a refund. You also do not pay fees on state taxes, etc. The fees should be based on the item sold only. Then if the item is returned at no fault of the Seller, then the fees should be refunded too.

I was a big fan of PayPal because of a long and good history with them and immediate disbursement to my account. I preferred when customers paid with PayPal, rather than a credit card. Now I may start pushing customers to pay with a credit card rather than PayPal. This is on our store website, not eBay. We are still using PayPal on eBay.

[buzzapparel]

I’m approaching $4000 in returns on my main account. This policy is awful. How can anyone not disagree with this policy? It’s simply a cheap money grab bordering on the precipice of extortion. 

[johnrj1226]

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@welike2buyandsell wrote:

when will the class action lawsuit start against PayPal for their new "fee extortion" policy that is in effect?

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Keep watching  late night TV programs feel certain you'll see one of those faux LLC lawyer ads soon.  Prime time TV  spots are already filled.

[lamber9347]

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@buzzapparel wrote:

I’m approaching $4000 in returns on my main account. This policy is awful. How can anyone not disagree with this policy? It’s simply a cheap money grab bordering on the precipice of extortion. 

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Good heavens, $4000 in returns? What do you sell? 

I've been selling on eBay for 20 years and can count on one hand the number of actual returns I've had since I began. I can only think of four returns and they would total probably $25 to $30. 

[historydirect]

Buyer submits payment of close to 5K (we sell high-end material) and then asks us to ship to a different address than what's displayed on the PP payment. What are our options? If we ship then we are not covered, if we refund we're out $200.  With our CC merchant account this would not occur as we would run the AVS check and simply void the transaction.

What is to stop the same buyer from resubmitting payment with the same wrong address, thereby costing us another $200. Where is the merchants ability to control incoming payments so as to avoid this? There should be an option to "decline" an incoming payment under a certain time frame and before shipping. We can do this with our CC processor.

[mrdutch1001]

I do not sell high risk items or in high risk categories so returns and subsequent refunds are of little concern to me... in 18 years of selling on eBay have had less than 5 requests for a return. Once in awhile I refund for overage of shipping costs on multiple item purchases, but even that occurrance is minimal...

[judith525]

Run screaming and block that bidder.  Or maybe block the bidder and then run screaming. 

[jscar59]

Not just the return issue.....I had someone buy an item (buy it now) then want to cancel  right away

because they ordered the wrong item. BAM!  Pay Pal keeps the fee but you eat it.

[jscar59]

eBay would say "Switch to managed payments"

[kensgiftshop]

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@jscar59 wrote:

Not just the return issue.....I had someone buy an item (buy it now) then want to cancel  right away

because they ordered the wrong item. BAM!  Pay Pal keeps the fee but you eat it.

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Then file it on your taxes.