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@syaoran123 wrote:

PayPal is generating substantial profit from this.

 

 

 

 

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They'd only be profiting if it costs them nothing to process a transaction - I have no idea what it costs them to do so, but I assume it costs them something (probably not 30c) since the flagfall applies to all commercial payments they process, regardless of the amount. 

eBay refund FVF on cancelled transactions, true, but FVF is comparable to the 2.6% fee on the full amount PayPal take, and PayPal refund that. The flagfall is comparable to the insertion fee that eBay charge (where applicable) and eBay never refund that for a cancelled transaction.

You're not alone, plenty of other sellers feel it's the buyer who should be paying the 30c, and some sellers will deduct that from a refund - I have no contest with that POV personally, however in practice, if I cancel a transaction I issue a full refund, so the 30c comes out of my pocket, as such, but all told such refunds probably cost me about $10 a year, so to me it's just a minor business expense that is covered by my other sales (the reality is, buyers consistently cause all manner of non-refundable costs, so I just consider this one of those).