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PayPal's new refund policy has sellers up in arms
 

What just happened? PayPal have announced some amendments to their user agreement that have not gone down well. From May 7, the company will no longer refund seller’s fees when a buyer asks for their money back.
PayPal has been the go-to payment platform for many small vendors since it was popularized on eBay and other online marketplaces. Currently, when someone sells goods or services, they are charged a flat transaction fee, plus a percentage-based commission on the sale. If a customer asked for a refund, everything except the small transaction fee was returned, but now PayPal has said it will keep seller’s fees, causing anger among users.

The proposed changes have no impact on buyers, who will still be able to purchase goods and request refunds as they always have. Instead this is a major blow for people using PayPal to sell things.

Anyone selling goods via PayPal pays 2.9% commission on the sale, which will no longer be returned when giving a full or partial refund. The flat fee is set at $0.30, and has never been subject to refunds.

People are angry about the changes, and have been quick to point out what it means in practice. If a vendor sells something for $1,000, but the customer changes their mind, the seller has not only lost their buyer, they will have also lost $29 in the process.

Alongside the refund changes, PayPal are also altering how they handle international payments and currency conversions. Transferring money to another country will no longer have a flat fee, instead PayPal are introducing a variable fee of 5%, with a minimum and maximum cost of $0.99 and $4.99, respectively.

PayPal has said that anyone who disagrees with any of their new terms is free to close their account.

Link to policy changes:
paypal.com/us/webapps/mpp/ua/upcoming-policies-full

Re: PayPal's new refund policy has sellers up in arms
 

No refunds on fees charged....variable fees on international payments....stupid currency conversion rates...paypal is certainly not getting in line with expanding global markets.

This is disgusting - trying to profit in every fashion possible...no respect

Re: PayPal's new refund policy has sellers up in arms
 

Unless people stop using paypal. It will have no effect

Re: PayPal's new refund policy has sellers up in arms
 

I'm 99% sure that this is bull. If I remember this correctly, around 2012 people were up in arms because the flat fee was no longer going to be refunded.

Re: PayPal's new refund policy has sellers up in arms
 

This is beyond disgusting. I am hoping enough people will complain, PayPal will change this policy. I can't imagine losing 10-50$ just because a Buyer returns or cancels an order. That is food off my table. That is money out of my savings. That is criminal.

Re: PayPal's new refund policy has sellers up in arms
 

The 30 cents DOES NOT CURRENTLY GET REFUNDED BY PAYPAL.

It comes out of your account balance.

Re: PayPal's new refund policy has sellers up in arms
 

I didn't say that it got refunded currently. I said that if I remember correctly, it used to be.

Re: PayPal's new refund policy has sellers up in arms
 

You said you're 99% sure that that part was bull. It's not.

Re: PayPal's new refund policy has sellers up in arms
 

Read my post again. I said that I'm pretty sure that it's bull that it was never refunded.

Re: PayPal's new refund policy has sellers up in arms
 

Fighting a losing battle on this one ebs..

Re: PayPal's new refund policy has sellers up in arms
 

i c



...........

Re: PayPal's new refund policy has sellers up in arms
 

Paypal does not get to keep all the fee it collected from sellers.
US sellers pay 30 cents transaction fee plus 2.9-4.4%.
so if it is a cross border transaction you are refunding,you lose 30 cents plus 4.4%,not 2.9%.
The only way to avoid it is not to use Paypal or accept electronic payments,sell under local pickup only and accept cash upon pickup .
or sell on website where you can accept cash,money order,postal order or wiretransfer,ach.

Re: PayPal's new refund policy has sellers up in arms
 

They are so cocky. The day will come when they are no longer running their virtual monopoly, and they will be obsolete because of their ridiculous policies and practices.

Re: PayPal's new refund policy has sellers up in arms
 

Well with Adyen coming into play shortly paypal are doing ebay a huge favor here by convincing sellers to dump paypal's services and switch to the new managed payments platform ebay is setting up.
Im just wondering if this move is calculated and intentional or not. Youd have be a real moron to not see the adverse impact this will have on paypal's business.

Re: PayPal's new refund policy has sellers up in arms
 

what kind of refund policy does Ayden have?

Re: PayPal's new refund policy has sellers up in arms
 

No idea but Im sure its not a draconian policy as this one. This is outright thievery.

Re: PayPal's new refund policy has sellers up in arms
 

I want to take this paypal policy seriously.....but my mind is completely focused on april 25th...........to watch avengers endgame......= )

Re: PayPal's new refund policy has sellers up in arms
 

my mind is focused on April 15th

Re: PayPal's new refund policy has sellers up in arms
 

On the bright side, we'll only have to deal with this until 2020 when Ayden takes over. And then we'll probably have new problems to deal with.

Re: PayPal's new refund policy has sellers up in arms
 

Does this mean that for me to accept payments from international buyers I will be charged 5% fee? Just wondering if I need to raise my handling surcharge even more.

Re: PayPal's new refund policy has sellers up in arms
 

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.

Re: PayPal's new refund policy has sellers up in arms
 

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.