Forum

Refund - Got Risk?
 

Hi, the Open Case changes since March seems to be good thing and when you refund your buyer the case will auto closed. However if there is too many refund is there going to be a problem especially in P@yP@L?

For example a person sells 90+ items per-month and refunded about 6 times in that month? Risky?

Yes, there is always a risk, especially with refunds.
When you refund, paypal is losing money and a possible buyer. (the experience is too bad, they may never use paypal again)

Even ONE refund can be risky depending on whats the age, item and amount going out of the account.

I chose to refund because these items are not expensive...less than USD$5.00 to $7.00 per item. Offering Free shipping but didn't offer tracking for these items since it's not expensive.

1). Is such small amount ($5 to 7 bucks) considered risky?

2). Can please give example what is considered risky?

Any help is greatly appreciated. (still learning...learn learn learn:yar:)

I doubt it will be examples.
Previous post was very right.
It mostly depends on age of account, number of transactions and so on.
There is no official figures.
More transactions you refund, more likely to get limited.
I would offer to communicate with a buyer as much as possible, in most cases it is worth to reship item before they ask a refund.
Especially those low value items.
It would cost you less and you will not be closing so many cases

Any amounts is a risk in Paypals eyes.

As one person in the UK sold something for 99p and the account limited!

But do try to keep refunds to a minimum if possible.

I see...actually I rarely encounter such problem however items sold since last month have been having shipping problems. That's why I give refunds but now I will talk to buyers to offer reship instead.

Hopefully the buyer got the patience to wait for the reship item to reach them before escalate it to eB@y. :eek:

Always try to avoid refunds when possible. NOT BY REFUSING, HOWEVER! Whenever a buyer tells me there is a problem, I always offer a replacement, or a refund - their choice. 95% of them choose a replacement.

If your refund rate exceeds 5%, I think that PayPal would start to look at your account. They will probably take into account your history, the age of the account, what you are selling, etc. But it is best to avoid this scrutiny if at all possible.

Someone asked "What is Risky?" The answer is, it depends. On a rock solid, older account that sells USB cables, maybe a 5% refund rate would be acceptable to PayPal. But a 5% refund rate on a new account selling DVD's would be the kiss of death.

Not to mention, when a human being gets involved with your account, they can look at several factors, not just your refund rate. AND they can also be having a bad day, or whatever. We do not know all of PayPal's internal policies, but we DO KNOW that it is best to avoid the scrutiny.

quick refunds to resolve problems and I would keep the percentages down real low. If your refund numbers starting running high I would look at my operation.

Refunds can be problematic - we all know how PayPal work, the minute they see something going backwards they know that there was an issue with the sale and that it didnt go smoothly. Does raise some flags if done often.

Ahh i see you been watching watchdog

Haha, I have indeed. Very interesting. Could of done a lot more but still..

paypal looks at all accounts to make sure they are trustworthy. they look at everything about the account.

Age, bank account, amount of money going in & out of the account all matter.

paypal expects accounts to run with little to no problems.

When an account makes refunds, paypal will check why. They will think that maybe the account is not being run well.

You need to have a business plan where refunds would be very few. You need to look at the reasons. ( Which I notice you say you are doing).

Ask yourself why you are selling the items at such a low price. Ask if you could change anything & have fewer refunds.

Now, paypal may see all these refunds were fine. BUT they might not like them if the percentage becomes too high.

If your account appears a RISK, paypal will react.
Always understand paypal will protect themselves first. You will lose.

:ranger:

Yes it can be considered risky - business is like that. Need to re-evaluate your products