Why is my refund less than what I paid?

[negan]

This is more a PayPal question, but as they don't have an AU forum, I'll post my issue here.

I paid $3184.83 AUD for an item on 28th May, converted to 1770.00 GBP.

Had an issue, opened a dispute case. Just won it.

I have now been issued a refund, but it was the 1770.00 GBP converted back to AUD which today equals $2826.95.

The user agreement policy states:

14.6 When you send a payment in which you perform a currency conversion using PayPal (i.e. converting the currency in which you fund your payment into the currency to be received by the recipient) and later there is a refund, return or Reversal, we will generally reverse the currency conversion and complete the refund, return or Reversal in your funding currency using the exchange rate which prevailed on the date of the original transaction.

This does not seem to have been the case in my situation. Now I have lost over $357.88 due to change in exchange rates.

I do not see how this is fair on me when I had to pay $3184.83 and not have received my item.

Anyway I sent PayPal a message about this with the above user agreement statement, this was their response;

Since exchange rates fluctuate, you may find that the original currency is worth less or more than it was on the date of the original purchase. In some instances, you may make money on the conversion exchange, and in some instances there may be a loss if you were to convert the currency. PayPal will not reimburse you for a loss in currency exchange, and we also will not take back any money that you potentially could have made on the currency conversion. We will only refund the exact dollar amount in the original currency that was used on the payment.

Anyone have any more ideas or am I just fighting a losing battle?

[digital*ghost]

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@digital*ghost wrote:

The key word in the user agreement section you've quoted is (unfortunately) "usually".

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I tried to edit it but was seconds too late - I meant "generally". 

Sorry for the superflous post, but I had to correct it in one way or another. 

[phorum_junkie*]

It is as Lyndal says and it can just as often work in your favour as against it. Had you received more back would you have contacted Paypal to offer to send them the surplus?

[negan]

Yes, I was waiting for somone to make this statement and if I was aware of that possibility and if that had been the case I would have expected PayPal to take back what was over.

[negan]

I do not understand what it means by "temporarily"? Does that mean later they will give back the difference. It's not very clear.

[digital*ghost]

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@negan wrote:

I do not understand what it means by "temporarily"? Does that mean later they will give back the difference. It's not very clear.

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This part:

"Some refunds, returns or Reversals may temporarily be made in a currency other than the currency in which you funded your payment."

means that if you pay from AUD to USD, you may receive the refund in USD in some circumstances, and then the conversion (at whatever rate applies) takes place, but once the conversion takes place, I would assume that amount is final. 

I suspect, though may be wrong, that there are limitations in place due to trade laws or fair practice policies, and to stop people from using PayPal as some form investment trade (imagine two accounts sending funds / refunding on purpose, but only in favourable circumstances, perpetually).

You also need to consider that there may be limitations because, well, where will the extra funds come from? When the currency exchange is performed, I understand X amount is debited from you, and if a refund is made, X amount is debited back from the seller and then X amount credited to you.

If there are legal limitations in place in regards to how long PayPal can perform conversions, when they debit back X amount from the seller, they can't debit more than what that seller originally received in order for you to receive the same amount that you paid, so if there is a shortfall it would mean that either PayPal pay it themselves, or someone misses out. These could well be the same kind of legal reasons they can't keep excess funds if it works out you receive more than you actually paid. 

[marcokeiros1382]

Negan did you had any solution for your problem? I´m exactly in the same situation but in my case is around 500 Euros that i received less than original payment.
Would appreciate any help from you .
Thanks

[lyndal1838]

Have you read the whole thread where the conversion rate changes are explained?

Unless you have any other circumstances that need to be taken into account I think you will find that your problem has been explained.

[rrrrrobo]

His problem of losing 500 euros for no good reason has not been explained in my opinion.

[lyndal1838]

If you think you can give a better answer after 2 years then go ahead.

The member must have been happy enough as they did not pursue the matter any further.....or maybe they realied the thread ws already a year old.

Welcome to the boards but please do not bump old threads which were correct at the time they were answered.