Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Wed May 8 2019 21:00:17

Rumor Spreads that PayPal May Reverse Costly New Policy

By: Ina Steiner

Sponsored Link

Update 5/11/19 - good news: A spokesperson provided the following statement in response to our inquiry: "While we recently updated our user agreement to give us the ability to align our refund policy with market practices, we have no plans to make any changes to our existing policy at this time."

Is PayPal delaying implementation of a costly new policy? A longtime seller told us today that she was told by a customer service rep that it is putting a hold on the policy change, and for now, will not be keeping 100% of the fees for refunds (the longstanding policy was to only retain the 30-cent fee and refund the transaction fee). 

Rumors are also abounding on discussion boards and we've heard from numerous readers looking for confirmation.

PayPal had recently notified sellers of the controversial new policy, which was set to take effect yesterday, May 7, 2019: "If you refund (partially or fully) a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees you originally paid as the seller will not be returned to you."

The change would be costly - previously PayPal retained the 30-cent per-transaction fee but refunded the variable fee (2.9% of the transaction for most sellers).

We are awaiting confirmation from PayPal and will update this post as soon as we get an official answer.

Please note that logging into our PayPal accounts shows the new policy under fees: "If you refund (partially or fully) a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees you originally paid as the seller will not be returned to you."



Comments (33) | Leave Comment | Permalink

Readers Comments

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

This user has validated their user name. by: NoMoreEbay

Wed May 8 22:50:24 2019

And...was this 'customer service rep' in the Philippines perhaps. PayPal and ebay have never done anything to benefit it's customers. I give this story a 0.00001% chance it's true.

These companies and USPS are going to realize in the pretty near future that the more they take with their underhanded and immoral money grabs, the less they will ultimately make as more and more sellers turn to Facebook, Craigslist and their own garage.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: comet This user has validated their user name.

Thu May 9 00:23:08 2019

Selling certain niche items from your garage is a non stqrter.  And I very much agree that Paypal,  eBay and USPS are abusive of.their customer base,  and getting worse.  Our PO is barely open during the day,  has ZERO after hour open times,  even the lobby is.closed for most of the morning and post hours.  The extremely long lunch down time--- almost 4 HOURS mid day--- and reopening at 2;30 PM means no one on THEIR lunch can drop a package,  buy postage,  get a weight,  pick up a held or oversize package.  And WHY???  They seem-- even in our rural PO, to have enough people to stagger lunch,  and not need such a very long time to--- do what,  exactly??  They sort in the AM, and the trucks for pick up do not arrive til almost closing--- and the lobby closes at least 1/2 hour before the actual office does,  what are they DOING????  

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

This user has validated their user name. by: Marie

Thu May 9 01:47:43 2019

I don't imagine that PP likes refunding fees anymore that sellers like refunding their buyers in full when a return happens.  PP did provide the service in which they were paid to provide.  So I see why they decided on this change.  I just don't like it.  And it would get rather expensive over a year's time.

I do hope they have reconsidered this policy.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: forrosebud This user has validated their user name.

Thu May 9 02:31:07 2019

Reverse the policy?   On April 18, Pay Pal CHARGED me $12+ change after I refunded the buyer due to a substantial overpayment based on eBay's erroneous invoice; and then 2 1/2 minutes later, PP charged me $10+ for the (corrected) buyers invoice/payment. I was well aware that their 'new policy' was not to go into effect until mid May. I cannot be the only one this happened to.   I spoke with at least 4 PP representatives in an attempt to reverse their costly decision to let it remain in effect.   I closed the account within an hour of transferring the funds to my bank. funds.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

This user has validated their user name. by: Marie

Thu May 9 02:36:13 2019

@forrosebud

The PP policy change was suppose to have started yesterday.  May 7th.

You may just need to look at those transactions a little closer.  If you fully refunded the customer, then PP should have only kept the 30 cent transaction fee.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: forrosebud This user has validated their user name.

Thu May 9 02:58:06 2019

@marie  I don't need to look at it 'closer'.  I argued the point of the initial refund I made to the buyer and the whys and wherefores with 4 different idiot reps. They were quite clear I was being charged because I REFUNDED the buyer! It did not make one dot of a difference that the 'policy' was 3+ weeks in advance of going into effect. They're low life trumpian grifters.  Account closed period.  

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: hawk This user has validated their user name.

Thu May 9 07:02:54 2019

it's funny that you never hear anything of how they are going to help sellers and customers. all you ever hear is how they are going to take more of your money. GREED always rules with the pretend tin gods as they have control. FOR NOW.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: HappyOne This user has validated their user name.

Thu May 9 07:12:16 2019

I suspect that Paypal’s change was due to the large influx of Ebay encouraged refunds with its free returns policy. Prior to the Ebay buyer “encouragements” the return of the 2.9% was a manageable loss of profit. Now that Ebay is moving away from Paypal they maybe rethinking their policy.  

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: Redlion This user has validated their user name.

Thu May 9 07:50:04 2019

I can confirm that the entire processing fee on a partial refund was returned to me for a refund I did on the 8th.  The eBay transaction and payment was completed on the 8th and partially refunded also on the 8th.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: Shanna This user has validated their user name.

Thu May 9 08:49:27 2019

What are the chances this policy is for everyone using PP? Walmart and Home Depot certainly don't pay 2.9%, I doubt they will be effected by this either. This is only for ebay purchases, where PP wouldn't lose money on these transactions if ebay didn't push returns so much.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

This user has validated their user name. by: Mighty Mouse

Thu May 9 09:15:49 2019

Related to the subject...Yesterday I visited my local main UPS hub and notice the amount of RS packages on the belt an asked the girls what was the amount of return packages taken in for the day up to that point (4pm).  She turn the computer screen and shown me that 85 packages were RS and only 37 packages were shipped.  Now that is not the total amount received for all UPS store, drivers, etc., for the day locally but is shows that there is a major problem with people abusing the return system.  Lucky we don't get many returns since we only sell hard to find collectibles, but the new PayPal policy is just the icing on the cake.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: epuise This user has validated their user name.

Thu May 9 09:19:37 2019

the lion's share of PayPal's Customer Service problems & losses are from EBAY customers... I bet they took a big hit w/ the forced returns... time for EBAY to let sellers keep a restock fee of up to 5% for refunds unless it is oos or damaged/lost.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: rfmtm This user has validated their user name.

Thu May 9 09:51:36 2019

PayPal is already not refunding their fees.  Had this happen end of last month already (4/26/19).  I can see them keeping their 30cents, which is what it probably actually costs them to do a transaction, but nothing more.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: SANT1N1 This user has validated their user name.

Thu May 9 19:16:39 2019

Well PP's refund period is 6 months, they're probably going to extend it to eternity...ok for us to have to hold funds forever in case of returns, but heaven forbid Paypig live by the same principles they force on users!

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: FLEbaySeller This user has validated their user name.

Thu May 9 19:18:34 2019

I had 2 refunds today and my fees returned on both - except for the 30cents.  One was a full refund and one was a partial refund.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: industrystones This user has validated their user name.

Thu May 9 22:37:08 2019

@forrosebud
- "They're low life trumpian grifters. "
So you are bringing the president in on your Paypal issue here?
YOUR president btw.  Haaa
Your lowlife argument just lost all credibility on a number of levels. Good. Close your account. See ya

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: comments This user has validated their user name.

Fri May 10 02:26:01 2019

I can confirm that I sent a refund on the 9th and was credited the fee back so I was not out the fee. I don't know if this is because the transaction took place before the 7th or if paypal did reverse course but I did not lose the fee.

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

by: ignatz This user has validated their user name.

Fri May 10 09:03:59 2019

"there are no fees to make the refund"

What cheek.  What arrogance.

And I understand there are no fees to log into your account - thanks, PayPal!

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

This user has validated their user name. by: The End

Fri May 10 13:27:28 2019

Well then, I'll have No Choice but to BLOCK the buyer from future transactions.
It will also flag users of PayPal.
And I will block all of them as well.
Life Is Good  :o)

Perminate Link for Rumor Spreads that PayPal May Reverse Costly New Policy   Rumor Spreads that PayPal May Reverse Costly New Policy

This user has validated their user name. by: Ina

Sat May 11 13:33:13 2019

See update at the top of this blog post for a statement from PayPal - good news, at least for now!

Click to view more comments
1 2  [Next Page]


Login is required to post comments.
To sign in to leave a comment using your AB Verify User Name, fill in the form below. If you have not yet signed up for AB Verify, or if you'd like more information, go to the Registration Page
.

Login for AB Verify
Be sure and use your email address and password to log in.

 
Email:
Password:
 
 Forgot Your Password?
 Even though you are signed in with the AuctionBytes Blog, you will have to sign in to the EcommerceBytes blog. But you can sign in with your existing AB Verify info.