Paypal and retaining their fee in case of a refund

[or_couture]

So I had to refund a buyer $1195.

I noticed my bank account was drafted for the full amount. I emailed paypal and called them the next morning.

I talked to a manager and expressed my frustration with them having reinstate this poor decision.

Then I got a dry email answer as well.

I'm sharing what I wrote paypal after they asked for my "understanding" of this matter:

"I'm sorry but I have no understanding of this subject what's so ever.

Retaining the service fee of a reversed transaction is like stealing money out of my pocket.

I was paid $1142 for this transaction, yet had to pay $1195 when it was reversed which means paypal stole over $50 from me for refunding a buyer!

I have a small eBay store in which I sell women's bags and clothes. There are a lot of returns. Things don't fit, buyer change their mind. All is fine. Sometimes they change their mind 4 mins after and ask me to cancel. It means I have a PENATLY for everytime a buyer asks to cancel or to return.

I do not understand how paypal expects small businesses to survive this decision, especially in retail with high return rate.

Excuse me, but I was very satisfied with paypal and this changed my entire image about payapl, my entire perception - now I think paypal steals money from small businesses and kills them in a move which I doubt could be legal. To hold a fee for a refund? That is unheard of. I hope people write blogs about it, and make youtube videos, and explain how you treat sellers.

I'm sorry but as soon as eBay introduce a new management system for handling payments I will opt in - this is unheard of!!!

Please copy paste this feedback and forward to however is in charge.

I would also like a manager to call me regarding this.

This is highly unacceptable and makes me very mad. I am shocked you guys decided to reinstate this. I hope other sellers give you a big backlash as well to make you change your mind. This is plain CRAZY!"

[eleanor*rigby]

You might want to post your concern on the PayPal discussion boards, since it's about PayPal policy:

https://www.paypal-community.com/t5/PayPal-Community/ct-p/en

[gwzcomps]

Yeah that new policy of not refunding processing fees is a joke. Most reputable payment processors will refund processing fees within a given time frame. Also the other people offer more competitive rates than PayPal does. They won't change their mind on it. Only thing a person can do is refuse to use PayPal as much as possible. Once I can't take PayPal payments on eBay I will have no more reason to use their services.

[parkersparrow]

Yeah, unfortunately this went into effect on October 11th. Pretty much paypal says if you don't like it then you're free to close your account.  😞

[or_couture]

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@parkersparrow wrote:

Yeah, unfortunately this went into effect on October 11th. Pretty much paypal says if you don't like it then you're free to close your account.  😞

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I would happily close my account if I had a choice.. With the current ebay settings I can't.

How are you guys handling that plus being charged service fee for the tax eBay collects and remits?

We don't get the taxes it goes straight to eBay but we pay a fee for that as well. That's also crazy.

[or_couture]

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@eleanor*rigby wrote:
You might want to post your concern on the PayPal discussion boards, since it's about PayPal policy:

https://www.paypal-community.com/t5/PayPal-Community/ct-p/en

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Good idea. Done.

[lite_corp]

The worst scenario is some evil buyers do multiple bogus purchases and then ask to refund, so you hand 2.9% out of your pocket straightly to paypal (so easy for paypal to make money). 

[atikovi]

I thought Paypal eliminated that soon after it started after many complaints and only keep 30 cents like before. Has that changed?

[lite_corp]

They began to enforce it last month regardless of the complaints (they know their days on ebay is numbered). Paypal's public statement says if you don't like it, you can close the account. The problem is if you want to sell on ebay, paypal is the only choice until the new payment system is set up (when??). I got dinged yesterday and lost $21 after the buyer requested to cancel the order within 30 mins of placing the order.