Paypal refuses to refund a fee

[Rigo]

So my fresh acconut got limited, I refunded the buyer but Paypal never refunded a fee.

This is something new. They were refunding full amount before.

Anyone faced this?

[JamesNorth101]

Been happening for quite a while now.

Annoying money grab but not much that can be done about it

[Rigo]

Originally Posted by agent006140

where have you been?
Paypal has done its job,why should it refund its fee just because y ou want to refund/
Some of the fee you paid Paypal is paid to Paypal's merchant account provider whch is usually a bank,bank is not going to refund its fee.
You pay 30 cents plus 2.9% to Paypal,1% plus 10 cents go to its bank

I'm just saying it's new, wasn't there a few weeks ago. They harm buyers not sellers... I don't care really

[phaz0rz]

They announced about a year ago that they would no longer be refunding their fee on US Paypals when you refund buyers.

They seem to be "rolling it out" as a new feature a to blocks of accounts at a time, like eBay does. I say that because most of my accounts are now in the new system where Paypal doesn't refund their fee and I have to refund that amount instead, but I have at least one account where Paypal is still refunding their fee.

As far as I know it only applies to US accounts. All of my canadian Paypals still have Paypal refunding their fee when customers are refunded.

They harm buyers not sellers... I don't care really

I'm not sure what you mean by this. It's 100% harming sellers and has no bearing on buyers at all. Sellers now have to refund Paypal's transaction fee PLUS the amount they received from Paypal AFTER their fee, so you end up having to refund your customer more than you originally received from them.

For example..
$9.99 transaction with a $.30 PP transaction fee so you received roughly $9.69 from the order.
Customer decides they want to return.
You receive their return and go to refund them.
You're obligated to refund the full $9.99 and Paypal keeps their $.30 transaction fee, so this order ends up costing you 30 cents, and then hopefully you can resell whatever was returned to you. :/

It sucks but it's inline with industry standards. Any other payment processor would have never refunded their transaction fee in the first place. Paypal was always the only one to refund the transaction fee and I guess they got tired of taking losses because of it.

[aenews]

Originally Posted by Rigo

So my fresh acconut got limited, I refunded the buyer but Paypal never refunded a fee.

This is something new. They were refunding full amount before.

Anyone faced this?

PayPal changed their policy starting October 11, 2019. They implemented changes earlier in the year, rolled them back due to complaints, then finally firmly decided to stay the course. In the past, PayPal would refund the 2.9% portion of the transaction fee and keep the $0.30. Now, PayPal will keep the entire 2.9% + $0.30, and you will be on the hook for refunding the full amount to the buyer. This would be the case even for an immediate refund (i.e. buyer wants to cancel order). Even for accounts currently unaffected, they will all eventually be transitioned over to the new fee system.

Originally Posted by PayPal

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.

[bugmyday]

Originally Posted by agent006140

fair is fair,Paypal is a payment processor,it has done its job,it gets paid.
Say Doordash driver delivered order you placed with Shake Shack and it turned out not to meet your expectation,do Yu expect the Doordash driver to refund your delivery fee?
Unless he tempered with your food by sampling it.

it a lot different scanrio specially in case of cancel order. Just think a buyer bought a 1000$ laptop and ask you to cancel, you are out of 60$ for no reason.

They should fix a time limit for fee refunding atleast 48-72 hrs in case buyer change their mind.

[bugmyday]

Originally Posted by agent006140

did your buyer ask you to cancel the order same day?
may be you can say too late to cancel,as the order has been processed and shipped,and then charge him a restocking fee when he returned the item?
if you have a restocking policy in the listing?

i do tell them but often buyer dont agree to pay fees and often result in dispute or cb.

[bugmyday]

Originally Posted by agent006140

This will be a question for Ebay,buyers often find a lower price and ask to cancel and then seller like you end up paying?
Now I AM wondering if I buy a laptop from Bestbuy and return it,I get all my money back,how does BBY feel if it has to eat the credit card fee,probably for BBY,it is much lower like 1%,so $10

they can absorb such cost easily it usually the small merchant like us that have hard time to cover such loss.

[Rigo]

I just refund what they pay and tell to contact Paypal to refund their fee, because they took it not me.

Originally Posted by phaz0rz

They announced about a year ago that they would no longer be refunding their fee on US Paypals when you refund buyers.

They seem to be "rolling it out" as a new feature a to blocks of accounts at a time, like eBay does. I say that because most of my accounts are now in the new system where Paypal doesn't refund their fee and I have to refund that amount instead, but I have at least one account where Paypal is still refunding their fee.

As far as I know it only applies to US accounts. All of my canadian Paypals still have Paypal refunding their fee when customers are refunded.

I'm not sure what you mean by this. It's 100% harming sellers and has no bearing on buyers at all. Sellers now have to refund Paypal's transaction fee PLUS the amount they received from Paypal AFTER their fee, so you end up having to refund your customer more than you originally received from them.

For example..
$9.99 transaction with a $.30 PP transaction fee so you received roughly $9.69 from the order.
Customer decides they want to return.
You receive their return and go to refund them.
You're obligated to refund the full $9.99 and Paypal keeps their $.30 transaction fee, so this order ends up costing you 30 cents, and then hopefully you can resell whatever was returned to you. :/

It sucks but it's inline with industry standards. Any other payment processor would have never refunded their transaction fee in the first place. Paypal was always the only one to refund the transaction fee and I guess they got tired of taking losses because of it.

[phaz0rz]

Originally Posted by Rigo

I just refund what they pay and tell to contact Paypal to refund their fee, because they took it not me.

Not how it works.

You DO refund them what they pay. Paypal doesn't refund the fee they charged you for the transaction so you refund your buyer more than they paid.

If you're only refunding the part you got after Paypal's fee then your accounts won't last very long. You're obligated to refund the full amount. Paypal doesn't have their processing costs refunded by Visa/MC.

[Rigo]

I'm talking abouth stealth account. And yes account won't last long, since I have them as much as I want - the tactic is simple - Paypal will pay not me.

Originally Posted by phaz0rz

Not how it works.

You DO refund them what they pay. Paypal doesn't refund the fee they charged you for the transaction so you refund your buyer more than they paid.

If you're only refunding the part you got after Paypal's fee then your accounts won't last very long. You're obligated to refund the full amount. Paypal doesn't have their processing costs refunded by Visa/MC.

[phaz0rz]

Except Paypal won't pay it. They aren't going to say "oh we'll just refund it in this case since the seller isn't willing to." They'll limit your account and take that amount from the balance.

It's doesn't make any sense.

[BleepBloop]

Originally Posted by bugmyday

it a lot different scanrio specially in case of cancel order. Just think a buyer bought a 1000$ laptop and ask you to cancel, you are out of 60$ for no reason.

They should fix a time limit for fee refunding atleast 48-72 hrs in case buyer change their mind.

There is a way around this by using Authorization to Capture (A2C) PayPal integration method instead of the default; receiving payment instantly.

Google it.

The payment will initially be an authorization and then funds are captured/claimed or cancel order/voided at a later time.

[TomMot567321]

Ah so sellers refund but the Pal keeps the fee?
That is true to form. The seller is always wrong in the world of PayPal

[jal1995]

happened to me before :(

[jal1995]

hapenned to me before

[Bigblackdog]

Originally Posted by phaz0rz

Not how it works.

You DO refund them what they pay. Paypal doesn't refund the fee they charged you for the transaction so you refund your buyer more than they paid.

If you're only refunding the part you got after Paypal's fee then your accounts won't last very long. You're obligated to refund the full amount. Paypal doesn't have their processing costs refunded by Visa/MC.

This is correct

[Romancevic]

Originally Posted by Rigo

So my fresh acconut got limited, I refunded the buyer but Paypal never refunded a fee.

This is something new. They were refunding full amount before.

Anyone faced this?

This is new pp rules. They are not refunding the fee in any case. So try to minimise returns and refunds