PayPal refund changes

[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?

[Yastrzemski Sports]

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

[Dpeck100]

Originally Posted by Yastrzemski Sports

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

I personally would think if someone was going to make a bold statement like a business is going under in a few years that they would at least go look at the fundamentals because they are available online to help form their opinion. PayPal made 2.06 billion in the last 12 months as of December 31st and those numbers are even higher today. It is easy to use and reliable and the market opportunity for them is growing not shrinking. They did 15.45 billion in revenue for 2018 and the estimates for 2020 are 21.16 billion. You don't find stocks that are making 52 week highs after a 20% correction in the SP 500 that aren't doing well. People might not like the changes but business will move forward because there isn't a better alternative and they have significant brand loyalty.

[Santo10Fan]

Originally Posted by Yastrzemski Sports

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

I think this could help the "better" thesis, because Venmo has gained so much traction in the past 3 years. It's a verb for many people under the age of 30. Stealing from eBay sellers in the last years of its deal must be Paypal's way of recouping that .98% mentioned by the author.

https://www.fool.com/investing/2018/...-with-ven.aspx

[polakoff]

Originally Posted by Yastrzemski Sports

Maybe I’m wrong. Maybe PayPal will be fine. They are a publicly traded company. For any public company shrinking business can be a disaster. I would think that the loss of a big client like eBay and their revenue stream could lead to a major restructuring at least. I don’t think many companies could lose that much and not have a big impact. But maybe they’ll be better than ever.

One thing is for sure - as stated before they are throwing us a big middle finger when they should be thanking us for our continued business now that we have a choice.

You also have to remember that Paypal doesn't pay folks interest, but does earn interest on the money it holds. I don't know numbers (and maybe there's a way to find this information) but if they are holding $1b worth of money for users, not providing them with interest, but earning interest on that money themselves, that's a revenue stream that will not dry up.