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PayPal fees from the original transaction will not be returned

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PayPal fees from the original transaction will not be returned going global from 5th March 2020.

"We recently updated our User Agreement in selected markets to reflect changes to our refund policy. As of March, 5th 2020, these changes will go into effect globally.

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. "


 

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Or as most business will do suck up the costs. I am not too sure that the Consumer Contract Regulations allow for withholding part of a payment, but there may be  clause in there somewhere. I know several business that in calculating final selling prices of goods add in a percentage for returns, so this will just get added in to that.

Stripe and other payment processors are also doing the same. I also think ebay are doing the same with their fees. Its not their fault the customer cancels or returns products so why should they give their costs back. Luckily I am in a low return business. Got to feel sorry for clothes or shoes sellers.


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Amazon do the same, if  the order gets cancelled after marking it as dispatched (Amazon takes the money at that time, not at the time of the order), if i recall correctly the seller still has a pay a percentage of the selling fee (not the full amount if it gets cancelled after marking it as dispatched)


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We now use the capture and authorize process from PayPal as we need to order in large items as required and some times there is a delay which triggers the customer to cancel and ask for a refund.

From experience the customer can lodge a PayPal dispute for the withheld amount and as us the seller can not prove the item has been shipped to the customer the dispute will go the customers way and PayPal will refund the held amount. From talking to PayPal they suggest working with the customer to assist them in understanding why the PayPal fee component of the transaction has not been refunded.

To date I have only had one customer file a dispute and that was for a whole $4 something WTF, but as said above they won the dispute and PayPal refunded it to them..

Then you may ask why not add the PayPal fee to every order, my reply is our markup is already enough to cover merchant and PayPal fee's but not when a customer cancels..

Hope this helps

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Some intresting reading...

Statutory Report on the Implementation of the Consumer Contracts (Information, Cancellation & and Additional Charges) Regulations 2013

The law as it currently stands is an 🐂'The law is an ass' Hopfully it will get reviewed and updated to reflect a more balanced approch.

So much is beeing wasted with people simply ordering stuff online and then just sending it back for no good reason other than "Oh I changed my mind!".

So much time and enargy is beeing wasted not to mention the road miles in transportation and the mass of crap piling up that is sent to land fill or resold on amazon or ebay 😂.

Some common sense need to be applied to the law me thinks...

We as sellers are not the problem! it cost us nothing in reality as t's a cost of sales and is tax deductable!

In the end it's the consumer and the planet that ends up paying for it all.

 


 

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On 3/16/2020 at 10:30 AM, 14steve14 said:

Stripe and other payment processors are also doing the same.

I find that my card processer and merchant bank are a lot cheaper than PayPal

Plus... about 95%, or may be more, of my sales that are returned are eBay sales


My store is currently running Phoenix 1.0.3.0

I'm currently working on 1.0.7.2 and hope to get it live before 1.0.8.0 arrives (maybe 🙄 )

I used to have a list of add-ons here but I've found that with the ones that supporters of Phoenix get any other add-ons are not really neccessary

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2 hours ago, ChristopherFisher said:

yes almost every payment option is doing the same. Is there any possibility to change this notice?

I have not looked bit I would imagine that its only text so its just a case of finding the file that it is in, and that will generally be in the language file somewhere.


REMEMBER BACKUP, BACKUP AND BACKUP

Get the latest Responsive osCommerce CE (community edition) here

It's very easy to over complicate what are simple things in life

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