PayPal's new refund policy has sellers up in arms

[parsierngue]

Originally Posted by mine

So what happens if someone decides they don't like you and makes an expensive purchase and then wants to cancel because they know it's going to cost you? It would be a good way for one of your competitors to drive you out of the market.

It's already always been very easily to get a competitor's account limited if you knew what you were doing. That would be a lot easier and more effective.

[Leader2dark]

Originally Posted by cafonabob

Why is this such a big deal? If you do a $200 sale it is a $5 charge. It sucks but it isn't the end of the world. If you own a restaurant dishes get broken. If paypal wants they can charge $20 handling fee on every return and we are powerless to stop them.

It's a huge deal because sellers are already squeezed to the limit. For high volume shops, this could be huge money, way more than dishes being broken.

Also it just feels so scummy and criminal. Seems like theft to me. A return is a full refund. Why should PayPal make money off that?

[aspkin]

For me, it makes me not want to take PayPal anymore and I have been using them for 10+ years.

As a payment processor when a refund is handled PayPal shouldn't keep the commission. It should be refunded. If they actually start doing this I will use PayPal less and eventually weed it out.

No other payment provider does what PayPal is proposing to do.

[PPbb]

PayPal is trying to get other sources of revenues after the introduction of Ayden. No doubt PayPal lost a lot of business from that shift to Ayden.

[SaiJin]

I wonder if it's possible for us to use other emerging payment options.

Venmo (I know it's paypal owned) , Zelle, etc

[agent006140]

Originally Posted by aspkin

For me, it makes me not want to take PayPal anymore and I have been using them for 10+ years.

As a payment processor when a refund is handled PayPal shouldn't keep the commission. It should be refunded. If they actually start doing this I will use PayPal less and eventually weed it out.

No other payment provider does what PayPal is proposing to do.

why should Paypal refund its share?
Its job is to process the payment and it did,what happens between you and your buyer is not its business?
say you sold an item not as described,should Paypal or USPS be punished as well??
Unless it alters your item causing the item to be not as described?which is hard to do as Paypal just process the payment.
the proper way to minimise returns is choose the venue,the buyer and the item you sold.
as to your competitor trying to destroy you,you have to deal with it,

[soli24]

still less worse than their stupid 180 days return policy .

[agent006140]

best is to ask someone who has a merchant account to accept credit card payments,or even ask Paypal,what happens when it issues a refund?
refund is a credit transaction ,it has to go thru the same protocal like the original transaction which is a debit transaction,it has to pay the gateway interface fee,transaction fee etc .
When I have my own merchant account to process credit cards ,when I issued a refund, I have to pay a transaction fee of 25 cents plus 1%,but since I have my own website,I charge a restocking fee.but on Ebay,there is no such option.

[CAPH]

Originally Posted by mine

So what happens if someone decides they don't like you and makes an expensive purchase and then wants to cancel because they know it's going to cost you? It would be a good way for one of your competitors to drive you out of the market.

It has sense. Sounds like a devil plan.

[agent006140]

what happen if someone returns a rock instead?
what happens I got hit by a truck on the way to post office?
what happens if I cant find my item,that common among Ebay sellers?
what about my washing machine blow up?
these have nothing to do with the payment processor?
remember Paypal is payment processor,not God or police or Salvation army?

[soli24]

pls any update ... i heard this is ⊗⊗⊗⊗ news ... someone called pp ,they denied this new policy !!!!!!

[slokor]

This is not ⊗⊗⊗⊗ news. It was written in their latest official ToS update email that was sent out to everybody.

[SaiJin]

LoL, it's real news.

It's a retarded news but still real none the less

[agent006140]

Paypal has done its job,and if your buyer used a credit/debit card,Paypal has t o pay a fee,that fee is not refundable/
so why should Paypal refund you in full,it would lose money /
Besides,its job is to process the original transaction which it did,and it get paid for doing so.
lets say you work for Uber Eat and deliver a pizza for Domino Pizza to the customer,the customer finds a cockroach,and want to return the pizza,would you refund what you earned as a driver?

[Play]

Originally Posted by soli24

pls any update ... i heard this is ⊗⊗⊗⊗ news ... someone called pp ,they denied this new policy !!!!!!

The PayPal rep probably denied the new policy because it sounded moronic. They're right. But it is in fact true.

[Ebayers12]

One second, if I refund a client without him openning the case am I gonna get back these fees?

2. It has impact on US accounts only, correct?

[SaiJin]

That’s actually a good question. Anyone?

[agent006140]

I think any refund,Paypal keeps the fee.
Unless it is same day,before Paypal batches up all the cc transactions and submit them.
read its policy,does it apply to all refund or just when the buyer opens a case?

[phaz0rz]

Originally Posted by agent006140

Unless it is same day,before Paypal batches up all the cc transactions and submit them.

Going by what the update says the time since the transaction isn't going to make any difference - they'll keep their fee regardless. Even if you cancel 5 minutes later before the transaction could have possibly settled.

ebs, if you see this, I'll bet that screenshot you posted earlier in the week showing that you were locked into a purchase and can't cancel is directly related to this PP update. eBay is changing things now so that buyers can't cancel orders - so they can prevent eBay sellers from being taken advantage of by cancelled orders (lost fee $) once this PP update goes into effect.

Paypal runs off the assumption that the majority of users accepting payments have no idea how electronic payments work behind the scenes, and for the most part they're right.

[Leader2dark]

I was hoping enough people being angry could get this changed. So far, does not look like PayPal cares.

This is absolutely insane. Anyone who sells higher value items knows people cancel often after placing an order.

Don't even get me started on returns!!!!!

[phaz0rz]

The screenshot ebaystealth posted the other day hints that eBay is starting to make it impossible for buyers to cancel orders without being penalized. He was committed and locked in once he added the item to his cart, it looked like.

So eBay is probably changing their cancellation/refund policy ahead of this update.

This also ties into Adyen and the integration of Paypal into Adyen. In Adyen there is (evidently) no fee paid to Paypal even if the buyer pays with their Paypal account. There's just the flat 2.7-2.9% that you pay to eBay. So there would be no need for Paypal to refund a transaction fee they didn't charge in the first place.

It's all just preparation for the future IMO. Everything has to be done in a certain order for things to work out properly.

I don't think they'll be going back on any of these major policy adjustments they've announced though. Stockholders > stealth sellers.

[ebaystealth1974]

I've been seeing it for months, but this is the only time I couldn't back out of it. Sure enough, got an UPI notice today.