Let's hypothesize on an unmentioned aspect of the May 7th Paypal Policy Update

[Appl]

What about if a buyer purchase an item for $1000 and right after asks to cancel the item and PayPal kept the fees for themselves this is a big loss for a seller these policy will not last especially when PayPal see significant decreases in members that’s BS

[phaz0rz]

Originally Posted by Appl

What about if a buyer purchase an item for $1000 and right after asks to cancel the item and PayPal kept the fees for themselves this is a big loss for a seller these policy will not last especially when PayPal see significant decreases in members that’s BS

If you think about it, this coincides with sellers switching to managed payments.

I really suspect at least part of the reason this update is being implemented is because eBay will be the one sending transaction fee refunds in the new system, and not PP.

I don't know.. we'll see. You example definitely would hurt and they are saying that's how it will be. But again I think it's only half the story we've got so far.

[agent006140]

every credit card transaction has fees involved paid to the bank which provides Paypal with the merchant account -transaction fee,interexch fee etc .
a refund is a separate transaction,it is a credit transaction versus the payment which is a debit transactions,so when y ou refund a buyer,there are 2 transactions involved,not one.
if you have buyer who cancel immediately after a purchase,thats a problem you have to deal with,either your business practice or type of merchandise you are selling or where you are selling,ebay is a fleamarket,lots of bottomfeeders and scammers there.
one common cause of immediate cancel is that the buyer finds someone selling cheaper than you .
It is called race to the bottom,you can either wait it out or stop selling the kind of merchandise everyone is seling or sell somewhere else where you can accept non electronic payment.
I just look at the inventory I have on AMZN-dvd and books,and AMZN tells me someone is selling cheaper than me and ask me to match that price?I figure sales is so brisk on AMZN,I will just wait ,my turn will come!

[phaz0rz]

In a merchant account you are not charged anything if you process the refund before the original transaction settles, because all you're doing is voiding an authorization so it can't settle.

Won't be the same if PP does what they're saying. I understand what you're saying about there being fees involved.. but that's really not always the case. There's no reason Paypal should force us to pay transaction fees when an order is cancelled 5 minutes after being placed.. because Paypal themselves aren't paying any fees on that transaction. They're just voiding it before it settles.

I would guess Adyen will handle the transaction fee refunds moving forward. There's no reason for Paypal to issue a transaction fee refund when they wouldn't have been the one to charge a transaction fee - Adyen would have been with their "2.7%". I don't know if PP's fee structuring will change because of this. Right now there's a ton of uncertainty. But on Adyen I don't think we will have to pay 2.7% to Adyen AND 3% + $.30 to Paypal.

[agent006140]

In a merchant account you are not charged anything if you process the refund before the original transaction settles, because all you're doing is voiding an authorization so it can't settle.
-----------
this is correct,also if buyer uses his bank fund or paypal fund,PAYPAL does not have to pay its merchant account any fee.
but most disputes come in after the buyer receives the item and by the time dispute is closed,it will be a few days after payment made ,up to 180 days.
we sellers always cry like the worst is going to happen,when Ebay revises its return from 7-14 days and then 30 days,sellers immediately complain they will be scammed,the return goods would be either used or damaged etc.
But from my own personal experience,I have very few returns.
Neither Paypal nor Ebay withhold my payments and Paypal just offer me a feature called PAYPAL fund now,meaning if someone opens a dispute,the payment would not be withheld.

[phaz0rz]

"funds now" is nothing but a creative way of Paypal talking more users into SSN verifying their account, in my opinion.

[agent006140]

Originally Posted by phaz0rz

"funds now" is nothing but a creative way of Paypal talking more users into SSN verifying their account, in my opinion.

no,this is not something you can apply,it is something Paypal offers to existing members in good standing,I assume like in my case,SSN is already registered with Paypal.
Also since I dont recall when was the last time someone files a dispute or chargeback on me,what does Paypal have to lose?
It is like offering someone a free flight on 737MAX knowing no one will use it.not for now !
Or offering all vegans all you can eat T bONE steak?

[Sunspot144]

Originally Posted by agent006140

Or offering all vegans all you can eat T bONE steak?

T for Tofu

[ebaystealth1974]

Originally Posted by phaz0rz

But on Adyen I don't think we will have to pay 2.7% to Adyen AND 3% + $.30 to Paypal.

Why would you? Paypal isn't processing transactions for payments sent to Adyen.

Or did I misunderstand you?

[agent006140]

Some said we can use Paypal via Ayden,as a compromise for the Paypal lovers ?
or just to get Ayden off the ground and running
we dont pay both,we pay Ayden,and AYDEN WILL settle with Payapl on whatever the terms they agree

[phaz0rz]

Originally Posted by ebaystealth1974

Why would you? Paypal isn't processing transactions for payments sent to Adyen.

Or did I misunderstand you?

If the buyer is still paying with PP, Paypal is doing at least a little bit of processing. At least that's my assumption.

[agent006140]

many of us know how Paypal works,but nothing about Ayden,is Ayden ready with an army of customer service staff to pickup the phone,I doubt it,it is costly and training takes time.
so it is a bad idea to abandon Paypal until Ayden proves itself

[ebaystealth1974]

Originally Posted by phaz0rz

If the buyer is still paying with PP, Paypal is doing at least a little bit of processing. At least that's my assumption.

Have you ever been charged a fee for SENDING anyone money? Nope.

Only on the receiving end.

[ebaystealth1974]

Originally Posted by agent006140

many of us know how Paypal works,but nothing about Ayden,is Ayden ready with an army of customer service staff to pickup the phone

They don't HAVE to be, because you won't be obligated to call them. Ever. For anything.

eBay will be handling it all.

[phaz0rz]

Originally Posted by ebaystealth1974

Have you ever been charged a fee for SENDING anyone money? Nope.

Only on the receiving end.

Well yeah, hundreds of times, just not on PP.

Neither point is relevant when a new system is being rolled out though. Are we to assume that Paypal is going from 3% profit on every transaction to no profit at all once PP is being accepted through managed payments? They'll still get a cut somehow.

[phaz0rz]

Originally Posted by ebaystealth1974

They don't HAVE to be, because you won't be obligated to call them. Ever. For anything.

eBay will be handling it all.

This I agree with.

Adyen is the contractor developing eBay's payment backend. Customers won't have any interaction with Adyen at all. Instead sellers will interact with the eBay staff assigned to the managed payments department.

[ebaystealth1974]

Originally Posted by phaz0rz

Well yeah, hundreds of times, just not on PP.

.

Well, we arent talking about anything but PP lol

Are we to assume that Paypal is going from 3% profit on every transaction to no profit at all once PP is being accepted through managed payments? They'll still get a cut somehow

Why do you think they are gonna start keep transactions fees for returns? lol

This is going to MAJORLY cripple them. Just the NEWS of the split caused PP stock to fall 10% lol

[phaz0rz]

Probably because soon they won't be able to charge a transaction fee at all, since Adyen will be the one charging a transaction fee and sellers won't be using Paypal.

I really don't know. We aren't being shown the whole picture yet so it's impossible to even speculate, lol.

Maybe part of that 2.7% fee will go to Paypal in cases where the buyer pays through a PP account.

I'm not arguing one side or the other.. just trying to make sense of how PP plans to stay profitable once Paypal is a payment option in Adyen. Adyen will be making 2.7% on those transactions and Paypal will be making.... nothing?

[agent006140]

I would think AYden cost is 1 % so making 2.7%,it can afford to split that with Paypal,just dont know how much goes to Paypal?
if we cant call AYden direct and Ebay CS is going to handle it,Ebay better hire more people.

[ebaystealth1974]

Well hell, I just learned that eBay only accounts for ~10% of PP's total payment volume. I would have NEVER guessed that.

Looks like PP will be just fine.

Something else I learned... PP is more profitbale than ebay.

Would have never guess that, either!

[agent006140]

ebay bought Paypal and ditched Billpoint,Ebay is not growing while Paypal is,so spun off Paypal .
Paypal has more than just processing payments,it has credit cards,debit cards,loans.
Ebay has gone nowhere,pages and pages of junks !
You buy something on Ebay and it comes from AMZN,so now buyers know they can get it cheaper on AMZN.
Paypal members have found creative ways to use Paypal which they will not be able to replicate with AYden

[ebaystealth1974]

eBay also expects to profit an additional TWO BILLION dollars a year, by switching to Adyen. Since they do not charge vendors to receive payments.

That's crazy!