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What happened to the purported PayPal policy not to refund fees for refunded transactions?

I recall when PP sent a policy change notice that appeared to say they'd no longer refund ANY of the paid fees for transactions that were eventually refunded, starting May 7.

 

I just fully refunded a buyer for the first time since that PP notice, and I got the usual full PP fee refund, less 30c.  This was for an international transaction, if that makes a difference.

 

The expectation that I wouldn't get the rest of the fee back has affected my mental calculations when discussing possible cancellations with buyers.  Was that policy misinterpreted, or has it been delayed?

Message 1 of 20
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19 REPLIES 19

Re: What happened to the purported PayPal policy not to refund fees for refunded transactions?

@ken.bos 

Unless something new just started Paypal would have kept the .30 transaction fee but not the rest.  The amount that you originally paid PP (less .30) would have been given to the buyer and the rest of the amount owing would come out of your account.

 

For example, if the total paid by the buyer was $20, your fees to PP would have been .58 plus .30 so you would have received $19.12.  When you refunded the buyer $19.42  *19.12 + .30) of the refund would have come out of your account and the .58 would have been paid to the buyer by PP.

Message 16 of 20
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Re: What happened to the purported PayPal policy not to refund fees for refunded transactions?

Well PayPal charged me for the fee reversal. 2.9% of the total amount. I am being charged for someone else's mistake.

I am sure there is someone who will say they did a service and should be paid. I fully disagree with that opinion. They did nothing. Beware of PayPal!

 

Message 17 of 20
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Re: What happened to the purported PayPal policy not to refund fees for refunded transactions?

I just received this email from Paypal this evening;  9/19/2019

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

Earlier this year, we notified you that we were updating our User Agreement to change our refund policy. We want to let you know that the policy change is going into effect beginning on October 11, 2019.

In line with industry practice and according to our updated policy, we will not charge a fee to process refunds, but the fees from the original transaction will not be returned. This policy will not apply to duplicate transactions, voids and most disputed transactions. You can review the PayPal User Agreement for more information on our return policies.

We only adjust our policies when we are confident the changes are fair and aligned with the value that our services provide to your business.

PayPal brings you more than just payment processing – your business has access to our platform’s full suite of tools, products and support built to scale with you, such as customized invoicing to help you get paid sooner, access to business loans, world class fraud monitoring, seller protection for eligible transactions, and business services designed to simplify your day-to-day operations.

PayPal invests in bringing you buyers – with over 268 million active account holders worldwide, PayPal works hard for your business to make sure we continue to bring your buyers the shopping experiences they have grown to associate with our brand. PayPal is the most-used digital wallet** and PayPal shoppers complete their checkout 88% of the time on average, helping you close more sales.+

If you have questions about any of these changes or your account, please don’t hesitate to get in touch with us.

Thank you for being a PayPal customer. We appreciate your business and look forward to continuing to help you grow and succeed in the future.

The team at PayPal


Just Plain Nic

Message 18 of 20
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Re: What happened to the purported PayPal policy not to refund fees for refunded transactions?

It's unethical and I think we should all send messages to paypal protesting! If enough people protest they may consider changing it.
Message 19 of 20
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Re: What happened to the purported PayPal policy not to refund fees for refunded transactions?


@spoolin01 wrote:
Thanks for the ecommerce tip, I'll definitely start dropping by there.

It's free to subscribe to the EcommerceBytes newsletter, and then you don't miss a thing:

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Message 20 of 20
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