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Refund discrepancy Ebay vs. Paypal

Although I don't have a return policy, I will accept a return when a buyer is reasonable and honest, willing to pay return shipping and contacts me within a reasonable time.

So a buyer purchased an item but when she received it, it didn't fit her phone and she requested and I accepted the return.

Purchase price was $20. Shipping was additional and not to be refunded.

When I received the return, I issued the refund through the ebay transaction for $20 as shown:

$20 refund issued$20 refund issued

 

 

 

Yet when I looked at my Paypal account, there's a difference in the amount withdrawn for the refund. They took $20.38.

Extra 38 cents taken from PPExtra 38 cents taken from PP

 

 

 

I'd already paid Paypal $1.10 for the fee when the buyer paid and I know Paypal doesn't credit any portion of that fee when I issue a partial refund but it doesn't seem correct that I'm charged an additional fee. 

 

Did PP mess up?

albertabrightalberta
Volunteer Community Mentor

Message 1 of 70
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Re: Refund discrepancy Ebay vs. Paypal

Looks like the 2.9% that PP charged you to process her tax, PP does not refund that.



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“Never pick a fight with an ugly person. They don’t have anything to lose.” ~Robin Williams
Message 2 of 70
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Re: Refund discrepancy Ebay vs. Paypal

Does that make sense? I paid that up front! I have to pay it again?!?!?
albertabrightalberta
Volunteer Community Mentor

Message 3 of 70
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Re: Refund discrepancy Ebay vs. Paypal

Well it could be PP charged you for refunding her tax? Or for processing her refund?



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“Never pick a fight with an ugly person. They don’t have anything to lose.” ~Robin Williams
Message 4 of 70
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Re: Refund discrepancy Ebay vs. Paypal

I know PP pockets the original 2.9% when a seller refunds..



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“Never pick a fight with an ugly person. They don’t have anything to lose.” ~Robin Williams
Message 5 of 70
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Re: Refund discrepancy Ebay vs. Paypal


@bonjourami wrote:

I know PP pockets the original 2.9% when a seller refunds..


Yeah, I knew that. But to hit me with another fee seems like double-dipping.

 

When I have time to sit on hold for a while, I plan to call them. 

albertabrightalberta
Volunteer Community Mentor

Message 6 of 70
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Re: Refund discrepancy Ebay vs. Paypal


@albertabrightalberta wrote:

@bonjourami wrote:

I know PP pockets the original 2.9% when a seller refunds..


Yeah, I knew that. But to hit me with another fee seems like double-dipping.

 

When I have time to sit on hold for a while, I plan to call them. 


@albertabrightalberta There was another thread similar to this.  eBay refunds are wonky when a sales tax amount is involved and  you don't refund for shipping or do a partial.  There was a long thread and the blue involved had very convoluted reasoning for why eBay should force the refund of the entire sales tax amount but only credit the seller part of it.

 

Member of the Grumpy Old Man crew
Message 7 of 70
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Re: Refund discrepancy Ebay vs. Paypal


@dtexley3 wrote:

@albertabrightalberta wrote:

@bonjourami wrote:

I know PP pockets the original 2.9% when a seller refunds..


Yeah, I knew that. But to hit me with another fee seems like double-dipping.

 

When I have time to sit on hold for a while, I plan to call them. 


@albertabrightalberta There was another thread similar to this.  eBay refunds are wonky when a sales tax amount is involved and  you don't refund for shipping or do a partial.  There was a long thread and the blue involved had very convoluted reasoning for why eBay should force the refund of the entire sales tax amount but only credit the seller part of it.

 


@dtexley3 

But as shown in my ebay screenshot, ebay shows the refund (from my end to the buyer) of the $20 purchase price. Their own notation states that THEY refund the sales tax to the buyer. 

 

I'm not inferring that it comes from me since I never saw the tax. (I know I paid a Paypal fee on the sales tax but I didn't have that money in my possession at all.

 

This is from the PP transaction when I received payment: 

payment details.png

 

 

albertabrightalberta
Volunteer Community Mentor

Message 8 of 70
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Re: Refund discrepancy Ebay vs. Paypal

Its another unsolved mystery,please let us know what you find out.



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“Never pick a fight with an ugly person. They don’t have anything to lose.” ~Robin Williams
Message 9 of 70
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Re: Refund discrepancy Ebay vs. Paypal

@albertabrightalberta 

[edit]

But it's still passed through your paypal account (again).

 

Note the difference of $0.38 matches the difference of what eBay originally collected in Sales Tax ($1.75) and what they "paid" back to you ($1.37) and then told paypal to refund the $20 + $1.75 instead of $20 + $1.38.

 

This is what the other poster was livid about, eBay is incorrectly posting the refund amount to Paypal which is costing sellers to refund MORE than what is owed.  The previous poster went round and round with the blue involved.   

 

It's pretty cut and dried.  eBay is refunding the seller $1.38 for the sales tax (in this case) but incorrectly telling Paypal to refund the buyer the requested refund amount plus the ENTIRE sales tax of $1.75 (in this case). 

 

brian@ebay 

Member of the Grumpy Old Man crew
Message 10 of 70
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Re: Refund discrepancy Ebay vs. Paypal


@dtexley3 wrote:

Note the difference of $0.38 matches the difference of what eBay originally collected in Sales Tax ($1.75) and what they "paid" back to you ($1.37) and then told paypal to refund the $20 + $1.75 instead of $20 + $1.38$1.35.

 

It's pretty cut and dried.  eBay is refunding the seller $1.38$1.37 for the sales tax (in this case) but incorrectly telling Paypal to refund the buyer the requested refund amount plus the ENTIRE sales tax of $1.75 (in this case). 


Ignoring the horse-before-the-cart circular math to get to the $20.38 assumed partial refund

https://community.ebay.com/t5/image/serverpage/image-id/616793i8E180E214CBDB960

eBay's calculation for the $1.37 credited for sales tax (from the total $1.75 sales tax collected) due to @albertabrightalberta's partial refund is:

 

$20.38 (assumed partial refund) / $25.94 (Item + shipping) x $1.75 (total sales tax)

 

Another example is the incorrect refund of sales tax on this refund for 1 of 2 shoes.

We have no bahamas today.
Message 11 of 70
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Re: Refund discrepancy Ebay vs. Paypal

My point here being, eBay told Paypal to refund the buyer $21.75, ($20 + 1.75 in tax) but only repaid the sell $1.37 of the tax.  The refund amount sent to paypal by eBay is incorrect in these cases.

Member of the Grumpy Old Man crew
Message 12 of 70
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Re: Refund discrepancy Ebay vs. Paypal

brian@ebay
eBay Staff (Alumni)

@albertabrightalberta wrote:

Although I don't have a return policy, I will accept a return when a buyer is reasonable and honest, willing to pay return shipping and contacts me within a reasonable time.

So a buyer purchased an item but when she received it, it didn't fit her phone and she requested and I accepted the return.

Purchase price was $20. Shipping was additional and not to be refunded.

When I received the return, I issued the refund through the ebay transaction for $20 as shown:

$20 refund issued$20 refund issued

 

 

 

Yet when I looked at my Paypal account, there's a difference in the amount withdrawn for the refund. They took $20.38.

Extra 38 cents taken from PPExtra 38 cents taken from PP

 

 

 

I'd already paid Paypal $1.10 for the fee when the buyer paid and I know Paypal doesn't credit any portion of that fee when I issue a partial refund but it doesn't seem correct that I'm charged an additional fee. 

 

Did PP mess up?


Hi @albertabrightalberta, thanks for sharing a detailed description and screenshots of what occurred! I've sent this example over to our sales tax team for review. When I know more then I'll let you know. 

Brian,
Community Team
Message 13 of 70
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Re: Refund discrepancy Ebay vs. Paypal

brian@ebay 

 

Thank you! It certainly does seem as if there's an error. 

albertabrightalberta
Volunteer Community Mentor

Message 14 of 70
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Re: Refund discrepancy Ebay vs. Paypal

It's like this -- given:

1. Sales tax is $1.75

2. Shipping is $5.94

3. Item is $20.00

 

Derive $20.38 from the 3 numbers above.

Message 15 of 70
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