Refunding paypal after mutual cancelling of sale

[foo-foo_the_snoo]

Hi, did a mutual cancellation of sale that had already been paid by paypal. It was a cash on pickup only auction. Have received the email to say buyer has agreed and case is closed but buyer has not received paypal refund. How long should it take to show? Does it make a difference if the paypal account was in credit or whether it debited a credit card or account first? I would like to advise the buyer ASAP so they know when to expect it. Or do I have to do something in paypal for the refund to happen? Thanks

[i-love-my-sheep]

You need to manually issue the refund from PayPal, it's not automatic. Just be careful too which option you select when cancelling because some options trigger defects. Also, and please, someone correct me if I'm wrong, but I think to lessen the risk of defect, refund first, then cancel. I could be way off track there too!

[kopenhagen5]

I would do the MC first in case they click "not agree" for some reason even accidentally, but select buyer changed mind. I believe that doesn't register a defect. Once "not agree" is selected, a case can't be opened and you are stuck with the fees.

Then do the PayPal refund by logging in and selecting the refund button next to the transaction.

[*sparklz*]

When a buyer gets the mutual cancellation request there is a message to the buyer stating not to agree till they have been refunded.

So it is really a trust thing that both do the right thing I guess.

[foo-foo_the_snoo]

Ok, I chose 'other' as reason on MC, and then added mutual cancellation in comment. Buyer has already agreed. Not sure what you mean about defect, I haven't done this before so don't know what I'm expecting. If I continue refund in paypal, how does it know this is a cancelled sale and not to charge me paypal fees? Or do I still have to pc the fees anyway! The whole point was to avoid fees by have cash on pick up.

[i-love-my-sheep]

When you refund, PayPal will automatically deduct the fees from the amount the take from you, so effictively, they are returned at refund. For example, if you are refunding $100, the buyer will receive $100, but you are only deducted 90 something. You should see it during the refund process (not sure I explained that real well, but you will see the differing amounts during the process).

Defects.....they are what eBay gives you when they think you have stuffed up. Selecting the 'other' option usually means you are safe from getting a defect, but there have been a few reports on here that people have got them from selecting 'other'. If you select the option meaning you are out of stock/don't have the item, you will definitely receive a defect.

If you go up to the top left of any eBay page and click the down arrow next to where it says "G'Day <your name>" and select account settings. On the left you will see a link called 'seller dashboard'. Near the top of the next screen, underneath your current rating is, your performance to day. Click on the top option there and it will show you if you already have any defects, and what they are for. It also shows what you can get defected for.

Here's a link that might explain it a bit better. http://pages.ebay.com.au/help/policies/seller-non-performance.html

[clarry100]

Correct me if I am wrong here too but from our experience in issuing PayPal refunds they give you back the 2.4% fee but not the 30-cents transaction fee. They keep that.

[foo-foo_the_snoo]

Thanks everyone for the great advice. Shall go do it now and hopefully all goes through smoothly. 🙂