PayPal New Rules

[Masterlu]

Please be aware that as of October 1st 2019, PayPal no longer refunds their fee even on a refund.

Personally speaking, I think this is so wrong on many levels. I spent many hours with them on the phone today; they admit they are getting lot's of heat, but this rule is in effect until further notice.

Regular Credit Cards ie: Visa & MC simply refund their fees in the case of a refund.

PayPal however insists on making money regardless if the sale remains, or refunds.

I just wanted to bring this to everyone's attention. They made a point of telling me regardless how large, or small a Merchant may be this is how they are doing business now.

[carlthess50]

Well sounds like time for people to email the fed’s about this
PayPal has been labeled as a credit card company and has to play by the same rules?
Right?
I’ve been using my Apple Pay more now for buying and selling. I even get cash back

[Puma Cat]

Really excellent points both by Ivan and Carl.

[Antonmb]

Unfortunately I don’t think there is any rule that says a credit card company has to refund fees for returns. The credit card company is a go-between and makes money from transaction fees. Some will claim that a return is just another transaction for which they should be compensated, and may even charge a return fee to the vendor.

[Poppyhome]

Originally Posted by Masterlu

Please be aware that as of October 1st 2019, PayPal no longer refunds their fee even on a refund.

Personally speaking, I think this is so wrong on many levels. I spent many hours with them on the phone today; they admit they are getting lot's of heat, but this rule is in effect until further notice.

Regular Credit Cards ie: Visa & MC simply refund their fees in the case of a refund.

PayPal however insists on making money regardless if the sale remains, or refunds.

I just wanted to bring this to everyone's attention. They made a point of telling me regardless how large, or small a Merchant may be this is how they are doing business now.

Yep, I flipped out on PayPal months ago when this was announced. It doesn't matter how many millions you give them. You are still just a little peanut to them.

So, a returned $10,000 sale will cost the merchant $250-$350.

PayPal can do whatever they want.

Ron

[Poppyhome]

PayPal doesn't charge miscellaneous fees like others................so unless you have a tremendous amount of customer returns, when added up at end of year, it might not add that much. YMMV

Ron

[tima]

It doesn't seem obvious that Paypal would return fees for a refunded item sale, assuming they did their part to complete the original transaction. Transactions are what PP sells and their service is separate from the item sold; you buy a PP transaction when you use their service. The payment transaction was successful even if the item sale was not. Some (many?) merchants, dealers, sellers that accept PP often pass the PP fee on to the seller - if you want to pay with PP it will cost you 3% or whatever.

Not a perfect analogy but most sellers see shipping fees as part of the cost of doing business independent from the item cost, they ask buyers to pay for shipping and don't refund original shipping fees for returned items (unless they sent a defective or wrong item, etc.) PP is a sunk cost. If merchants don't want to absorb the PP fee cost - just like they don't want to pay for shipping on returns - they're free to reduce the cost of the refund. Banks nor merchants typically won't return wire transfer fees if the item is returned.

Of course you don't have to like it. :-)

[SCAudiophile]

Originally Posted by tima

It doesn't seem obvious that Paypal would return fees for a refunded item sale, assuming they did their part to complete the original transaction. Transactions are what PP sells and their service is separate from the item sold; you buy a PP transaction when you use their service. The payment transaction was successful even if the item sale was not. Some (many?) merchants, dealers, sellers that accept PP often pass the PP fee on to the seller - if you want to pay with PP it will cost you 3% or whatever.

Not a perfect analogy but most sellers see shipping fees as part of the cost of doing business independent from the item cost, they ask buyers to pay for shipping and don't refund original shipping fees for returned items (unless they sent a defective or wrong item, etc.) PP is a sunk cost. If merchants don't want to absorb the PP fee cost - just like they don't want to pay for shipping on returns - they're free to reduce the cost of the refund. Banks nor merchants typically won't return wire transfer fees if the item is returned.

Of course you don't have to like it. :-)

Noone likes the reality of it but payment processors provide a service which they charge fees for. Many of my largest customers are some of the world's largest, Capital One, Visa, Walmart, JPMC, BofA, Apple, and many more large and medium companies. Their fees anticipate what it takes them, in their opinion mind you, to totally service the end to end transaction including potential of returns and the cost thereof, non-repudiation requests, regulatory processes, etc.....I personally think the fees are too high but it's shouting at windmills time if you know what I mean...

Great post,..tough subject but great post!

[Robert_Anderson]

Screw 'em, we'll do our transactions privately from now on.

[Cohibaman]

Originally Posted by Robert_Anderson

Screw 'em, we'll do our transactions privately from now on.

I have the same sentiment. While that will probably work well here on AA, it won’t (for me anyway) on eBay and other sites/locations where I routinely use PayPal. I’m not quite sure how this will affect me personally, but I will keep a close eye on it for sure.