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Just had an email from PayPal saying that they are now not returning fees when issuing a refund.
How does this compare with other payment methods?
Surely it just discourages companies from nice friendly refund policies!
If I buy something at £1000, it now costs a company £29.3 to refund me if I change my mind, it doesn't fit, etc.
Are you sure it's the full fees that they keep? I noticed a few months ago that it cost me a few pennies when I had to refund a buyer who didn't understand the words "cash on collection" but it wasn't the full fee.
Full PayPal fees, yes.
Not Ebay fees (which are a larger proportion normally).
This is the wording from the email:
In line with industry practice and according to our updated policy, we will not charge a fee to process refunds, however fees from the original transaction will not be returned. This policy will not apply to duplicate transactions or voids. You can review the PayPal User Agreement for more information on our return policies.
Blimey 😕 I've had to refund nearly £1400 in 4 recent transactions where buyers couldn't negotiate their way through ebays payment system to get to cash on collection..
Its just a cost of business, and if you're accepting paypal goods and services payments then really thats what you are, hence why its now called that. Any other card payment wouldn't get any fees back and normally a refund charge too, so it wont have a bearing on business refund policies as thats what were all used to. Right to return etc will still override any question on charges.
Of course the problem is for Joe bloggs selling an old set of forks and wanting goods/services so they don't get scammed. But again there you could argue you're paying for protection. if you want to offer a refund paypal still have to cover their costs - i suppose if you’re legitimately not a business then you don't need to offer a refund unless the goods are faulty/not as described etc in which case more fool you, if the buyer just doesn't want them then thats their choice, refund less fees.