How does return work as a seller with managed payments?

[agemelee]

If a buyer opens a request, EBAY holds the entire item value on your funds. 

Example: Item sold for $500, ebay holds $500 even though with managed payments they took out 500 x .1235 meaning you collected $438.25. 

If I were to issue a refund, would I have to refund the $500? 

What about Ebay’s $61.75 they collected?

Also question about the MP balance if its 0. 

If my balance is 0, it shows my balance as -500. 

If I do a return, does it have to come from a cash account or can I use my credit card?

[stephenmorgan]

If you do a complete refund you should get all your fees back except for $0.30

[vintagecraze50]

Regarding how the refund money is taken out: It comes out of whatever payment method you have chosen to use for ebay fees, store subscription etc. If you have it set for PP then it takes it out of PP.  If you are allowed to use a credit card and you have chosen that as the funding source it comes from there. If you have no alternative payment method other than your checking account, it will be withdrawn from there. If you do not have enough funds for them to take, they will most certainly bill you for that. Usually they are careful and hold these payments and do not deposit them if there are funds avail so they can collect that money from the return case.

[vintagecraze50]

Incorrect about the PP credit card thing—they hold the funds when a return comes in. If they have already made a payout before that return comes in then they will first try to take it out of any money that will come in form new sales. There will be a perpetual hold on some funds until that return is satisfied. I suppose you could pay that return with an alternate payment source, if there are no available funds. We rarely have a zero balance so most of ours comes from pending funds or held money for the returns.