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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.

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

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.

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

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?

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

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.

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

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.

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

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

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

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

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,

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

still less worse than their stupid 180 days return policy .

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

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.

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

It has sense. Sounds like a devil plan.

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

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?

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

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

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

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

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

LoL, it's real news.

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

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

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?

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

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

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

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?

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

That’s actually a good question. Anyone?

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

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?