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PayPal Clarifies New Refund Policy When It Comes to Voids

PayPal Clarifies New Refund Policy When It Comes to Voids

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.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

2 thoughts on “PayPal Clarifies New Refund Policy When It Comes to Voids”

  1. Everyone should email Paypal upper management about this regressive refund policy. Their email addresses are the first initial and last name @paypal.com like dschulman@paypal.com. Let them know that everyone pays for returns, they should not profiteer on buyer’s returning products.

    1. So, are you also going to email all of your other service providers and request every single penny back that you spent to put an item up for sale? Listings fees. All those advertising dollars. The FVF…

      If you provided a service to someone as a third party (as PayPal does), wouldn’t you expect to get paid for it no matter how it turned out for the other two parties? You provided the service and you did your part correctly, so why shouldn’t you be paid for it?

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