WARNING! Paypal now charges you to send a refund!

I want to make sure everyone knows now about Ebay/Paypals newest moneygrabbing scam. 

 

Due to eBays method of shoving people straight to Paypal every time they buy an item I end up with some customers making multiple purchases and paying separate postage costs for each item(sometimes up to 20 items).  

I dont like overcharging people so I usually refund all of the separate purchases and send a new, combined invoice with the correct postage on it.

 

On the Paypal website it clearly states, 

"If you issue a full refund using the Issue Refund link, PayPal automatically refunds all the original transaction fees. If you send a partial refund, PayPal refunds part of the fees, based on the refund amount."

Now, when I go to do the refunds I am being charged for it.

Here is an example from today...

 

A customer has ordered 6 ribbons from me and paid 6 times including 6 postage charges. I wanted to refund the payments and combine them onto one invoice to save them $$ on postage and me some $$ on fees.

The buyer pays $3.14 for each transaction. Paypal keeps .38c in fees and I get $2.76 of this amount but when I try to refund it $3.06 comes from me and only .08c is refunded from Paypal, so out of the $2.76 I was left with when they took their 1st bite from it I have to refund the customer $3.06 and Paypal only refunds .08c.

This refund ends up costing me .60c in fees per transaction. I have around 40 of these every day, it adds up fast when you sell such small items.

I called Paypal and they said they have changed their policy in Feb so it just tough luck for me(even though they havent adjusted the website). 

 

I have a header on every store page and clearly state in every listing to wait for a combined invoices so dont know what else to do to avoid these fees, the customers that dont read the listings are usually the same ones that go ahead and leave negs and abuse us about being overcharged for postage - I cant win.

Smiley Frustrated

 

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WARNING! Paypal now charges you to send a refund!

Paypal do not charge to issue a refund. When you issue a full refund the total fee charged is also refunded. I suggest you contact Paypal if you are having an issue.

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WARNING! Paypal now charges you to send a refund!

I have contacted Paypal and the changes came into effect in Feb.

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WARNING! Paypal now charges you to send a refund!

It's 30c, not 60c.

 

The 30c transaction fee is retained by Paypal.

 

You can -

 

a) not refund and send everything separately, or

b) refund less the transaction fee.

 

Or work out the total cost to the buyer, add the extra 30cs, amortise it across the listings and do heaps of partial refunds. Which also has issues.

 

And make it quite clear on your listings that if buyers pay separately they get their items posted separately, unless they request and/or wait for a combined invoice.

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WARNING! Paypal now charges you to send a refund!

Apologies as I was confused by your original post. With your figures of 0.60 cents, I assumed you were being charged something you shouldn't. You should know that the 30c transaction fee is retained, as it is clearly written on Paypal's policy pages. 

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WARNING! Paypal now charges you to send a refund!

The fee they retain is .30c but the actual cost is .60c.

As stated earlier...

 

The buyer pays $3.14 in each transaction. Paypal takes .38c in fees and I get $2.76.

When I refund it $3.06 comes from me and only .08c is refunded from Paypal(they keep their .30c plus I have to cover the other .30c of the refund), so out of the $2.76 I was left with when they took their 1st bite from it I have to refund the customer $3.06 and Paypal only refunds .08c.

 

Hopefully that explains why each refund ends up costing .60c in fees.

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WARNING! Paypal now charges you to send a refund!

I am now aware that the policy has changed recently but it is quite confusing because on the Paypal website it clearly states, 

"If you issue a full refund using the Issue Refund link, PayPal automatically refunds all the original transaction fees. If you send a partial refund, PayPal refunds part of the fees, based on the refund amount."

My problem is that we are out of pocket when people change their mind or make a mistake and this is not fair to the sellers.

 

Also, as explained earlier, the amount is .60c because I have to refund them from my own money the .30c that Paypal have kept as well so I end up covering .30c to Paypal and .30c to the customer.

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WARNING! Paypal now charges you to send a refund!


@scrapthatidea_1 wrote:

The fee they retain is .30c but the actual cost is .60c.

As stated earlier...

 

The buyer pays $3.14 in each transaction. Paypal takes .38c in fees and I get $2.76.

When I refund it $3.06 comes from me and only .08c is refunded from Paypal(they keep their .30c plus I have to cover the other .30c of the refund), so out of the $2.76 I was left with when they took their 1st bite from it I have to refund the customer $3.06 and Paypal only refunds .08c.

 

Hopefully that explains why each refund ends up costing .60c in fees.


Sorry, but the math isn't quite correct - If you receive $2.76 of the total payment and give back $3.06, the difference is 30c, so it has cost you 30c, which is accounted for by PayPal retaining the original transaction fee.

 

 

 

 

 

 

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WARNING! Paypal now charges you to send a refund!


@scrapthatidea_1 wrote:

The fee they retain is .30c but the actual cost is .60c.

As stated earlier...

 

The buyer pays $3.14 in each transaction. Paypal takes .38c in fees and I get $2.76.

When I refund it $3.06 comes from me and only .08c is refunded from Paypal(they keep their .30c plus I have to cover the other .30c of the refund), so out of the $2.76 I was left with when they took their 1st bite from it I have to refund the customer $3.06 and Paypal only refunds .08c.

 

Hopefully that explains why each refund ends up costing .60c in fees.


I believe $3.06 - $2.76 = $0.30.

 

Please correct me if you have issues with that mathematical equation. What Paypal refund is irrelevant. If you get $3.14 and paypal get 38c then your nett is $2.76. if you refund $3.14 of which Paypal refund 8c from you initial nett payment of $2.76 you are 30c down. The difference between what you got and what you refunded. Please show where the extra 30c cost to you is. Unless it's when they repay, but that is an entirely different transaction, amortised over the number of items.

 

Double entry bookkeeping doesn't mean you get to count costs twice.

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WARNING! Paypal now charges you to send a refund!

 


Sorry, but the math isn't quite correct - If you receive $2.76 of the total payment and give back $3.06, the difference is 30c, so it has cost you 30c, which is accounted for by PayPal retaining the original transaction fee.

 

____________________________________________________________________________________________________

 

 

The math has been triple checked and is correct,

 

Payment was $3.14

Paypal takes .38c = $2.76(so I am down .38c so far in fees)

I then need to refund payment 

Paypal covers .08c(so I am only out .30c in fees) and I have to cover the other $3.06 

How do you return $3.06 from $2.76? You can't, which is why the other .30c needs to come from my own Paypal balance.

 

So .30c comes from my Paypal account to make up the extra and I also am also down for the fee of .30c which equals .60c in total out of the original $$$ that I never made because it was refunded.

How does this math not make sense?

 

 

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