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

 

Message 1 of 31
Latest reply
30 REPLIES 30

Re: WARNING! Paypal now charges you to send a refund!


@digital*ghost wrote:

I don't often get people asking to cancel after a payment has been made, but I do get request to combine postage after multiple payments have been made. But I have flat rate postage for people who make one payment (that is, all additional items post for free after the first P&H charge), and that offer is predicated on them making one payment, because most of the time combined postage is a bit higher than my current flat rate and I'm only prepared to absorb it if a single payment is made, so if I combine postage for buyers after they've made separate payments, technically they don't qualify for this offer and I only refund the actual excess postage, which is always a bit less than what would have been saved by my auto-combine rates (meaning, they can still save, but not at my expense). 

 


I did not offer her just one option to cancel it. I offered her two with one is paying extra for what she needed. It would cost her extra $30

In most cases my buyers agree that they do not read description and they want to pay extra to get what they are asking for but this buyer decided to go with cancellation. 

 

I actually refunded her what I received from Paypal only. Then I checked if ebay refunded me their final value fees. They did so I am not out of any of my money  for this particular sale. 

Decoroo - Custom made wooden products
Message 31 of 31
Latest reply