PayPal refund changes

[Yastrzemski Sports]

That’s an excellent point. It happens to me a couple times a year. For me, most of my sales are small (under $10). PayPal has never returned their transaction fee so the percent doesn’t really matter - it is usually pennies. The 30 cents is the big hit. It would definitely affect a larger sale. The problem is if you accept refunds then the buyer can tell you to ship then return it and you have to pay shipping at least one way and eat the pp fee.

Thanks to the op. I did not realize that happened.

This is an escalation in the pissing match between eBay and PayPal. PayPal reeks of desperation because they know they will be out of business within a few years. They have decided to abandon all customer service and care - and grab as much cash as they can on the way out. I still accept PayPal but this, in addition to the discussion last month about returns, makes me want to switch if I didn’t think it would cost me a ton of business. Their recent policy changes show they are bitter and don’t care about your troubles with eBay if it is going to cost them money.

Originally Posted by MikeKam

Oooo, that's not cool.

It will most likely change how I go about refunding - I have the occasional "Can you please cancel this?" request an hour or two after purchase, so I may state that there are changes associated with wanting a cancellation without a real valid reason. It sucks, but if there is legitimate reason for a refund (item damaged, lost, etc.), then I don't mind taking that hit - just another cost to factor in.

[savedfrommyspokes]

For as long as I can remember, paypal has not refunded the 30 cent transaction fee when a full refund to a buyer has been made. However, I have always received back the 2.9% fee charged by PP on the amount refunded, including an hour ago.

[yanks12025]

Originally Posted by savedfrommyspokes

For as long as I can remember, paypal has not refunded the 30 cent transaction fee when a full refund to a buyer has been made. However, I have always received back the 2.9% fee charged by PP on the amount refunded, including an hour ago.

I cut the page off, but it goes into affect next month I guess.

But this could be a huge problem. If you don’t like someone, you can just buy their item and then ask for a refund and then screw them over on the fees.

[savedfrommyspokes]

Originally Posted by yanks12025

I cut the page off, but it goes into affect next month I guess.

But this could be a huge problem. If you don’t like someone, you can just buy their item and then ask for a refund and then screw them over on the fees.

I see now that on May 7th that this change will go into effect. I typically complete a few refunds daily for overpayments in s/h (due to the buyer checking out multiple times instead of once). I already do not refund back the 10% ebay charges for a s/h FVF, so with this PP change I will now refund 3% less back for overpayments. 99% of my refunds are for this reason.


However, I agree that someone being spiteful could simply request a refund to cost the seller their 3% back in fees. If it is obvious that this is the reason for the refund, a trip to the BBL will follow.

Announcements like this from paypal seem to continue to drive their stock price, so probably more changes coming in the months to come. At least the change was not an increase in the existing fees though.

[Buythatcard]

Originally Posted by savedfrommyspokes

I see now that on May 7th that this change will go into effect. I typically complete a few refunds daily for overpayments in s/h (due to the buyer checking out multiple times instead of once). I already do not refund back the 10% ebay charges for a s/h FVF, so with this PP change I will now refund 3% less back for overpayments. 99% of my refunds are for this reason.


However, I agree that someone being spiteful could simply request a refund to cost the seller their 3% back in fees. If it is obvious that this is the reason for the refund, a trip to the BBL will follow.

Announcements like this from paypal seem to continue to drive their stock price, so probably more changes coming in the months to come. At least the change was not an increase in the existing fees though.

Currently, eBay does not refund any fees based on an overpayment of the S/H. For example: A buyer wins 2 items on Weds. night. S/H for the 2 items is $5.10. Buyer makes 2 payments and pays S/H of $4.25 for each item which comes to $8.50 in S/H. eBay will charge 10% on the $8.50 which comes to $.85. I then refund the overpayment of $3.40. eBay should refund $.34 to me but they don't. I now have to call them up and explain what happened.
If this happened once in awhile, then I am not going to cry over it. But this happens several times a week. After a while it adds up.
I remind buyers all the time to wait for an updated invoice but many just don't care. Moving forward, I decided to subtract the eBay fee from what I refund.

[Dpeck100]

FYI

Paypal has a market cap of 122 billion and EBAY is 35 billion.


PayPal has revenue growth estimated at just under 18% for the next 12 months.


How on earth did someone come to the conclusion this company would be out of business in two years?????

[Fballguy]

Originally Posted by Dpeck100

FYI

Paypal has a market cap of 122 billion and EBAY is 35 billion.


PayPal has revenue growth estimated at just under 18% for the next 12 months.


How on earth did someone come to the conclusion this company would be out of business in two years?????

People tend to overreact to things here.

I do a lot of online shopping outside of ebay, for just about everything and I can't remember the last time I bought from a site that didn't accept Paypal.

What I don't understand is why they still offer the F&F discount. That seems like it would be low hanging fruit for them. If they're worried about fee income, why do they allow us to use their service free of charge?

[Aquarian Sports Cards]

Originally Posted by Yastrzemski Sports

That’s an excellent point. It happens to me a couple times a year. For me, most of my sales are small (under $10). PayPal has never returned their transaction fee so the percent doesn’t really matter - it is usually pennies. The 30 cents is the big hit. It would definitely affect a larger sale. The problem is if you accept refunds then the buyer can tell you to ship then return it and you have to pay shipping at least one way and eat the pp fee.

Thanks to the op. I did not realize that happened.

This is an escalation in the pissing match between eBay and PayPal. PayPal reeks of desperation because they know they will be out of business within a few years. They have decided to abandon all customer service and care - and grab as much cash as they can on the way out. I still accept PayPal but this, in addition to the discussion last month about returns, makes me want to switch if I didn’t think it would cost me a ton of business. Their recent policy changes show they are bitter and don’t care about your troubles with eBay if it is going to cost them money.

Paypal isn't going anywhere. They are accepted on millions of websites. I think this has more to do with people trying to circumvent fees, which has always been an issue.

Let's say you buy a card from me and pay via paypal, then one of us contacts the other (either direction, doesn't matter) to offer or ask for a better price if we do it off-site, or as F & F. I refund your payment and we re-conclude the sale, screwing paypal out of their fees.

[D. Bergin]

Originally Posted by Aquarian Sports Cards

Paypal isn't going anywhere. They are accepted on millions of websites. I think this has more to do with people trying to circumvent fees, which has always been an issue.

Let's say you buy a card from me and pay via paypal, then one of us contacts the other (either direction, doesn't matter) to offer or ask for a better price if we do it off-site, or as F & F. I refund your payment and we re-conclude the sale, screwing paypal out of their fees.

The circumventing fees nonsense is getting old from all corners of the Ebay and Paypal world. It's a tiny blip on their radar perpetrated by a very tiny group of people, that is used as an excuse to screw everybody else over.

They are and will always be doing just fine. It's a software transaction that doesn't cost them any resources to carry out and should be folded under the customer service umbrella.

Just another pound of flesh where the cost of doing business gets lifted off of their shoulders and on to all of the small sellers that made them rich to begin with.

It's a ridiculous policy, just on principle alone.

I particularly like the line where they say "there are no fees when you make the refund...........but, we're not giving you your money back".

That's LOL'able. How long until they "charge" us to refund somebody?