Entrepreneurship & Small Business

Paypal giving sellers the middle finger - making refunds more expensive

  • Last Updated:
  • Sep 19th, 2019 7:05 pm
[OP]
Deal Fanatic
User avatar
Nov 18, 2002
7039 posts
642 upvotes
BC Interior

Paypal giving sellers the middle finger - making refunds more expensive

Not sure if this has been covered but this will affect any merchant accepting paypal.

Essentially paypal is now keeping ALL the fees after a purchase is refunded (previously they only kept the 30cent fixed fee, now it's 2.9% + 30cents). This goes against the policies of most credit card processors that do in fact refund you the fees.

Also, be sure to read this change if you regularly send money abroad via Paypal:

"We're removing the flat rate pricing for sending money to friends and family members who have PayPal accounts in a country other than the United States and introducing a new variable fee of 5% based on the amount you send with a minimum of $0.99 and a maximum of $4.99 per transaction. We're also removing any variation depending on the recipient's country.

"We are changing the currency conversion spread to 3.25% over a base exchange rate in situations where you are a sender of money in a PayPal transaction."

More here:
https://www.techspot.com/news/79545-pay ... -arms.html
https://www.ecommercebytes.com/C/blog/b ... 27118.html
4 replies
Deal Expert
User avatar
Aug 2, 2010
15196 posts
4987 upvotes
Here 'n There
I thought Stripe didn't refund the fees either. I am grandfathered under them so they do for me. Elavon refunds the fees.

Paypal is another fine example of companies screwing who made them successful once they are in a position that they can't be stopped.
[OP]
Deal Fanatic
User avatar
Nov 18, 2002
7039 posts
642 upvotes
BC Interior
eonibm wrote: I thought Stripe didn't refund the fees either. I am grandfathered under them so they do for me. Elavon refunds the fees.

Paypal is another fine example of companies screwing who made them successful once they are in a position that they can't be stopped.
Stripe refunds fees as far as I know. They refund mine at least.

Apparently PayPal has unofficially put this on hold but not officially changed the policy.
Deal Expert
User avatar
Aug 2, 2010
15196 posts
4987 upvotes
Here 'n There
ichpen wrote: Stripe refunds fees as far as I know. They refund mine at least.

Apparently PayPal has unofficially put this on hold but not officially changed the policy.
Then you too signed up before they changed their policy.
[OP]
Deal Fanatic
User avatar
Nov 18, 2002
7039 posts
642 upvotes
BC Interior
So after walking this back in April due to negative publicity PayPal is back at it and rolling out the second middle finger on Oct 11. This will ultimately be passed onto customers either through refund/restocking fees or through higher prices to recoup it.

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)