PayPal added some clarity to its new refund policy that goes into effect next month that will prove costly to sellers. As we reported on the EcommerceBytes Blog on Wednesday, PayPal will no longer credit fees when issuing refunds, stating specifically: “In line with industry practice and according to our updated policy, we will not charge a fee to process refunds, but the fees from the original transaction will not be returned.”
There was one aspect of yesterday’s email notification that had some sellers puzzled:
“This policy will not apply to duplicate transactions, voids and most disputed transactions.”
A spokesperson responded to our inquiry with the following statement:
“A “void” occurs when a transaction is canceled before it has a chance to be settled. This might be a transaction made by mistake and quickly canceled or similar situation. Once the transaction is settled, it cannot be voided, only refunded. Because a void makes it like the transaction never happened at all, no fee was collected from the merchant and thus nothing to refund.”
The new policy takes effect on October 11, 2019. Read more and leave a comment on the EcommerceBytes Blog.