eBay

jnjtra · ‎06-19-2020

Well, I sure have a venting-type story today that might help someone out in the future with the same issue if they're reading this.

Sold a low value item on eBay for around $12. The buyer payed promptly with PayPal. He then messaged me, asking to cancel. I said sure, no problem. I'm not the type to be like "well, no refunds, sorry," especially if I haven't already shipped the item out yet, which I hadn't.

Now I've done this a million times, I'm not a newbie. I know how to issue refunds.

So I went first to eBay to cancel the item and issue a refund, selecting the reason "buyer changed his mind." I thought all was good. But a few minutes later, I received an e-mail from eBay that said: "You approved a refund request, but there was a problem issuing a refund from your payment account to the buyer. Please contact your payment provider, so they can help resolve the problem quickly."

I found this very odd. I have never recieved an email like this before just from trying to do a basic refund. So I said, screw it, I'll just issue a refund directly from PayPal. So I logged into PayPal, found the transaction, clicked "issue refund," and immediately got the error message: "We were unable to complete this payment. Please add funds to your PayPal account and try again." This is with the funds from the guy's payment still in my PayPal account, mind you!

At this point, I'm feeling dubious, because I know I'm going to have to start calling someone over a $12 refund.

So I call up PayPal, and the representative I get is really nice. She tells me that eBay has recently changed their policies. According to her, I need at least the full balance in my PayPal account at the time of refund to issue a refund. I told her I had the full balance there, less the taxes witheld by eBay and the fees witheld by PayPal. She explained that I needed that there as well. I obviously didn't have that there, since I usually keep my PayPal balance at $0.00 like a sensible individual.

Anyway, at this point, I'm like, hey, what the hell, this makes no sense. You're telling me I can't refund this guy with the full payment that he sent me, that it's not enough. Now this guy is not going to get a refund in a timely fashion, as it takes a few days to pull from my bank account and add a balance to my PayPal, and that's going to reflect poorly on me as a seller.

Has anyone else experienced this absurd policy change? This is absolutely ridiculous. Basically, you now need a PayPal balance IN EXCESS of whatever you sell at all times in order to cover the cost of a refund. I explained how illogical this way to the PayPal representative, but all she could do is apologize and blame eBay for their new policy.

This is apparently eBay specific as well. Like if someone paid me directly through PayPal as a merchant, say, over Mercari or Facebook Marketplace, a refund would be no problem.

This just... can't stand. I feel like I'm in a theater of the absurd with this one. How is it possible to pull from my bank account immediately when I want to buy something from eBay but not when I want to issue a refund? I basically had to ask a friend to friends&family me a dollar just so I could give this buyer his refund in a timely fashion. This is an incredibly frustrating issue, to say the least.

I'm dreading the day I sell a high dollar item, transfer the funds to my bank, and then have to issue a refund later. Going to be a headache and a half.

mtgraves7984 · ‎06-19-2020

Sorry this happened to you.

For what it's worth... this is a good example for a benefit of Managed Payments. I also keep a zero balance in PayPal.

A few weeks ago, I made a sale and a request to cancel (the buyer's brother had purchased... not 'the buyer') came in shortly after. The buyer was immediately refunded with his own Pending payment.

Hang in there!

aerosedan · ‎06-19-2020

I've also experienced this. I posted about it previously in response to another seller who raised the same issue.

The funds are technically in the system, and it's only because the payment has been placed on hold (in the case of a dispute) that it cannot be returned to the buyer.

If taking a skeptical view, it appears to be a way of temporarily getting a double payment to go through the system and extending the period funds are held by eBay & PayPal.

Incredibly frustrating experience that sends you around in circles between eBay and PayPal with no clear way to resolve. Both sides suggesting you contact the other. Or add additional funds to PayPal (while the original payment is on hold) to send another direct payment to the buyer.

Really needs addressing.

xander.bear · ‎08-28-2020

There's comfort in knowing you're not alone.

I sold an item on eBay, seller pays me for item including shipping via PayPal. I left the money in my PayPal account since you never know. USPS lost the item, buyer requests refund via eBay which I issue, no problem. Instead of PayPal issuing the money back to the seller from my PayPal balance it uses my personal checking account instead. This causes my checking account into a negative balance. So now I'm out my item, the money, shipping costs and now owe overdraft fees to my bank.

You'd think PayPal would have used my PayPal balance first then my checking account for the any remaining balance.

This costly experience will make me think long and hard about using either platform again.

where*you*crowin · ‎08-28-2020

If this ever happens to you (or anyone) again, you can have a friend or family member who does have money in their PP account, send you the money to cover the shortfall.

Likewise, and I hate to feel like this, if someone buys and then cancels immediately, I'm personally not too worried if they have to wait a few days for the money to clear from your bank so you can pay them back. Remember, they have caused YOU an inconvenience as well as MONEY that you won't get back from PP.

busterbgood · ‎08-28-2020

Paypal works on whole numbers. If I have $50 in my paypal account and buy something for $55 they do not empty out my PP account and take $5 from my bank, they take the entire $55 from my bank and leave my $50 in my PP account. This is an automated transaction, they aren't going to write code to subtract from here and then there and then on and on until they get the total amount needed. Whatever is easiest is what is going to happen. If you had $0 in your account and then sold an item and received payment of $50.00 when you go to refund there is not $50 there because Paypal has already taken their cut leaving you short to provide the refund. It has nothing to do with anything being disputed.

luckythewinner · ‎08-28-2020

@jnjtra wrote:
I obviously didn't have that there, since I usually keep my PayPal balance at $0.00 like a sensible individual.

I find it sensible to keep a small float in my PayPal account to cover just this osrt of unexpected issue.

Why do you believe that "sensible individuals" would not do this?

fashunu4eeuh · ‎08-28-2020

Agree with @luckythewinner . My standard practice is to maintain a PayPal balance, in an amount equal to my highest sale, to cover returns and contingencies.

amybethshouse · ‎08-29-2020

The reason for all these current posts on this is because PayPal used to take any remainder from your backup funding if you didn’t have enough in your PayPal account. They recently changed the policy and no one knew about it beforehand.

bermudakidf22 · ‎12-19-2020

Also experienced this as a seller, went to issue a refund and can't.

This is 100% stupid, and you cant instantly add funds, to your paypal account and can't cover the difference with another payment.

Fix this