Paypal keeps 2.9% fee even AFTER refunding the customer now!

Discussion in 'Off Topic' started by hmscott, May 4, 2019.

  1. hmscott

    hmscott Notebook Nobel Laureate

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    PayPal Will No Longer Refund Seller Processing Fees
    PayPal seems determined to scrape the wallets of sellers with its new policy update, effective on May 7th.
    by Liam Fitzpatrick Published April 4, 2019
    https://slickdeals.net/article/list/paypal-policy-change-no-refunds-processing-fees-returns/

    "Heads up, PayPal users.

    As of May 7th, PayPal will no longer refund processing fees when sellers offer either partial or full refunds to their buyers.

    PayPal's inextricable connection with eBay and other community-based commerce sites like Etsymake it an easy go-to platform for sellers looking to manage purchases.

    Refunds have always been an important and unavoidable facet of the average seller's business. Most sellers offer some sort of timed guarantee for unopened packages, making it easy for buyers to decide on purchases.

    However, with this change, it will be harder for small sellers to reliably make money on the products they sell through PayPal."

    Paypal keeps 2.9% fee even AFTER refunding the customer now!
    Louis Rossmann
    Published on May 4, 2019
    https://web.archive.org/web/201303060...
    https://www.digitaltransactions.net/a...
     
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  2. alaskajoel

    alaskajoel Notebook Deity

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    I bet the EU regulatory body will love that.

    Sent from my SM-N960U1 using Tapatalk
     
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  3. Vasudev

    Vasudev Notebook Nobel Laureate

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    I'm sad now notable chunk of money will be lost on as part of PP and bank's processing fee for International purchases.:oops:
     
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  4. Nick

    Nick Mr.Mischief

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    Story time: About 6 months after Samsung released the S8/S8+, they tried to boost sales by offering a BOGO if you sent in some old, cheap phone. Being the wheeler-dealer that I am, I decided to buy some and flip them on eBay. So I bought these phones directly from Samsung, sent in my trade-in devices, and listed them on eBay. Shortly after listing them on eBay, they flagged my listing as suspicious and request proof of ownership. No big deal, I sent in the receipts from Samsung. A week later, they tell me I am permanently banned from selling on eBay and there is no appeals process. Also, no one in my household or anyone they think might be in my household is ever allowed to sell on eBay again.

    The rules for sites like eBay, PayPal, and Amazon are enforced arbitrarily. I can go on eBay and find blatantly fake listings that don't get flagged and my legitimate resale of Samsung phones got me banned. If you're an online seller, don't rely on eBay and Amazon as your marketplace and PayPal as your payment processor. You could be a 5 star seller with hundreds of feedback like me and then get suddenly banned tomorrow with no way of continuing your livelihood. Luckily, I had a part-time job and this was just a side-hustle while I was in college.
     
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  5. TheReciever

    TheReciever D! For Dragon!

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    How annoying.
     
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  6. hmscott

    hmscott Notebook Nobel Laureate

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    PayPal's new refund policy has sellers up in arms
    Sellers are angry as PayPal says it will start keeping sales fees when making refunds
    By James Miller on April 7, 2019, 10:07 AM 43 comments
    https://www.techspot.com/news/79545-paypal-new-refund-policy-has-sellers-up-arms.html

    "What just happened?
    PayPal have announced some amendments to their user agreement that have not gone down well. From May 7, the company will no longer refund seller’s fees when a buyer asks for their money back.

    PayPal has been the go-to payment platform for many small vendors since it was popularized on eBay and other online marketplaces. Currently, when someone sells goods or services, they are charged a flat transaction fee, plus a percentage-based commission on the sale. If a customer asked for a refund, everything except the small transaction fee was returned, but now PayPal has said it will keep seller’s fees, causing anger among users.

    The proposed changes have no impact on buyers, who will still be able to purchase goods and request refunds as they always have. Instead this is a major blow for people using PayPal to sell things.

    Anyone selling goods via PayPal pays 2.9% commission on the sale, which will no longer be returned when giving a full or partial refund. The flat fee is set at $0.30, and has never been subject to refunds.

    People are angry about the changes, and have been quick to point out what it means in practice. If a vendor sells something for $1,000, but the customer changes their mind, the seller has not only lost their buyer, they will have also lost $29 in the process.

    Alongside the refund changes, PayPal are also altering how they handle international payments and currency conversions. Transferring money to another country will no longer have a flat fee, instead PayPal are introducing a variable fee of 5%, with a minimum and maximum cost of $0.99 and $4.99, respectively.

    PayPal has said that anyone who disagrees with any of their new terms is free to close their account."

    R00sT3R
    ""PayPal has said that anyone who disagrees with any of their new terms is free to close their account."

    This is the statement of a company giving the middle finger to its customers."
     
    Last edited: May 5, 2019
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  7. Vasudev

    Vasudev Notebook Nobel Laureate

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    Yeah time for a new payment service..... Google Pay or Apple or Samsung pay or something else that covers worldwide.
     
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  8. cucubits

    cucubits Notebook Evangelist

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    Same here... I've been using paypal less and less lately. I'm completely happy to move away from them.
     
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  9. Kyle

    Kyle JVC SZ2000 Dual-Driver Headphones

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    Anyone know how credit card transactions work for merchants in case of returns? Do CCs charge a similar fee on returns?
     
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  10. Porter

    Porter Notebook Virtuoso

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    Here is my paypal horror story, sorry it is so long. I still use them to sell on ebay but sparingly and most importantly they do not have any of my credit card info nor my bank account info!

    Couple of years ago I sold a used Clevo system on ebay (think it was around 1600ish?). I normally don't sell internationally (I'm in USA) since I don't want to mess with shipping or surprise fees or other risks. In this case the buyer used one of those shipping services out of Florida and he was located in mid America. I always choose the 14 day return window on Ebay when selling computers, which I know means nothing if you use paypal since they have a 6 month buyer return window there!

    He had a few issues upon recieving it, and I worked through them with him one at a time. It took a lot of time but I wanted to make sure he was happy and everything worked as intended. He was in a very hot environment and was trying to overclock it and it was obvious he really didn't understand what he was doing. We kept in contact and he told me about how his games were great and he was happy.

    Fast forward a few months and he said it could no longer boot. I tried to help troubleshooting but eventually I came to the conclusion he would have to send it in for repair (it had a warranty from HID) on it. I even offered to help setup the return for him since I've done business with HID multiple times. He refused and said he couldnt afford to send it in to be repaired and wanted his money back.

    Well I didn't want to do that as besides losing my shipping costs and fees to sell it, there was the fact it was worth less then from when I originally sold it. This was many months after sale and since it was working great for months and had a full warranty, I didn't feel obligated to do anything more.

    We went through an ebay resolution and he lost, I won. I had plenty of evidence in our chats about how great it was working and he was satisfied. He got exactly what he paid for and then broke it, and had a warranty to get it fixed.

    Them he did a paypal dispute and I went through the same thing, evidence and all, had to make many phone calls and it went back and forth a few times, but eventually he won this time and paypal removed the 1600 from my bank account that I had linked at the time.

    I fought it and fought it but eventually they completely closed the case one final time. Now realize I had done $100k+ in sales though paypal at the time so I hoped they valued me in some way. Nope, they didn't. They also would not let me remove my credit card or bank account from their records. So I had to close my card and get a new bank account, and told them the reason I am doing so and to block any charges that could come through from paypal as our business relationship was over.

    I also filed a nasty case with the BBB (Better Business Bureau) and figured that was that and move on. A few months later they called me up and asked if I would take a payoff to remove my BBB complaint. Of course I did after they raised it up a few times and I couldn't refuse.

    Kudo's to HID for taking that laptop back after all of that and fixing it under warranty for me so I could resell it one final time. That was a nightmare and each time I sell a laptop on ebay I worry that it could happen again. At least now they can't take money form me, they may ask for it but since nothing is linked it won't be automatic. They've sent messages asking to link something ot the account, but I will not after that mess.
     
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