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Mon Apr 21 2014 12:16:32

eBay Keeps Fees on Refunded Purchases

By: Reader

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Dear Ina,
For anyone who has sold on eBay - I just found out that while eBay acknowledges on your site page that you have gave a refund to a buyer that had a complaint about the item they bought....They DO NOT credit your account in their monthly fees unless you call.

MILLIONS of dollars and people are being de-frauded by eBay. Check all the items you have gave a refund for and then check your eBay fees - they are charging a "final value fee" on the initial sale price - NOT the final value of the item you sold. CAN you say lawsuit?

They totally make it look like they see the refund and are gonna change their fees. But they don't unless you call, and furthermore - while you can do everything else online, they intentionally make this part a call in - while everything else on eBay is done online.
J.




Comments (17) | Permalink

Readers Comments

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Ric

Mon Apr 21 14:51:19 2014

OP... did you also realize that PayPal retains the transaction fee you paid when the payment was transferred into your account? Look at your PayPal records and you will find they keep that transaction fee too.

True...eBay knows when you have issued your buyer a refund and...

YES, you would think that an honest and ethical company would automatically credit the eBay final value fees and PayPal transaction fee associated with the transaction when the item has sold - but remember this is eBay which is famous for their lack of honesty, transparency and ethical standards.

True... eBay & PayPal do not automatically issue credits for refunded transactions and the company sees no image issues nor do they have a problem with the lack of honesty and lack of ethics.

Now, you could always file for a transaction cancellation, that is, assuming your buyer will agree, BUT.. ( with eBay there is always a but) filing for a transaction cancellation will earn you a defect transaction strike.  Earn enough defect transaction strikes and eBay will remove you from the Top Rated Seller Program, and eventually purge you as an unworthy seller.

eBay relies on the fact that most sellers will find the time consuming process of contacting customer service seeking credits so onerous, that they will be discouraged from doing so. Wait times for eBay customer service are purposefully long to discourage you from chasing small amounts of money.

This allows eBay to profit while the seller takes a loss, and this is the exact mentality eBay has toward all sellers.  eBay will force you to take returns, knowing full well that they will live to collect more fees when you relist that returned item.

As far as eBay executives are concerned, this is all a cost of doing business - not for them - but for the sellers who dare to run through the maze eBay has worked so hard to build for you.

Do not expect eBay to wake up and suddenly act like an honest and ethical company, that is well below their Dewey, Cheetham, and Howe mentality.

At eBay, corporate profits ( regardless of whether they are legitimately earned ) is their number one priority while the fair treatment of sellers is so low on their list, that item has to look up to see the bottom.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Puck

Mon Apr 21 19:34:16 2014

eBay's optimal business goal is to be one way seller valve.

Everything coming in and nothing going out.

They tested the waters on paying sellers with company store script only redeemable on eBay.

The test was voluntary to participants. Next time it breaks water, who knows?

PayPal working capital loans, paying the help with script good only in the company store.

If these greedy corporations have their way, unanointed sellers will be doing business as resident employees of 19th and early 20th century textile mill and coal mining towns.

Back to the future.

They won't be happy until they have it all.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Marie

Tue Apr 22 08:25:25 2014

The cancellation process is not a new one.  Ebay has never auto credited when sellers have had the need to refund a buyer.  You have always had to file for a cancellation.  And for the future, that is all you need to do to get your FVF back.  I'm a bit surprised that a CSR hasn't explained that to you when you call in for a refund.

And yes, depending on the reason you select when filing for a cancellation, it can count against you in the upcoming defect rate, however in this case it would not.  You just need to check off the proper reason.  

The only reason for a cancellation that gets you a defect that I'm aware of is the 8th one stating you ran out of stock.  All the others appear not to generate a defect, at least they haven't for me.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Marie

Tue Apr 22 08:35:07 2014

Whoops I should have said the reasons, I ran out of stock or I sold to another buyer are the reasons you can get a defect for filing a cancellation.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: Moonwishes This user has validated their user name.
Web Site

Tue Apr 22 08:35:08 2014

So glad I'm not on ebay! On ecrater where they do have a small fee if something is sold via their main marketplace, if the transaction is cancelled, they cancel the fee without us even contacting them since they know the order was cancelled. Love selling at a place that tries to maintain some moral ethics.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: fredhanbar This user has validated their user name.

Tue Apr 22 08:44:31 2014

FYI--check your Paypal account when you refund. It clearly shows that they DO issue a refund on the transaction fee when issuing a refund. It appears prior to clicking the button "Issue Refund". Lets give credit where credit is due !!!!

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Philip Cohen
Web Site

Tue Apr 22 09:07:43 2014

Regrettably, Fred, the few "PreyPal" credits are far outweighed by the very many debits ...

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: auctionguy This user has validated their user name.

Tue Apr 22 09:36:59 2014

fredhanbar, they refund the 2.9%, but not the $0.30 fee for the transaction. That is the amount others were referring to above. If you check your Paypal statement, you will clearly see that. Of course, Paypal hides their fees when you just look at your balance by showing only the gross amount of the transaction and not the fees. You have to click on ''View all of my transactions'' to show the Paypal fees. Any time you issue a full refund, the Paypal fee refunded will be $0.30 less than what they originally charged you. Obviously they are counting on you either not noticing it, or not bothering to call in to get the full amount refunded, if they will even agree to do so. I called once to complain that it cost me $0.30 to issue a full refund for a buyer that changed their mind and decided they didn't want the item. This was before I had shipped the item, so at least I didn't have any shipping costs. I still spent 15 minutes on the phone to get my $0.30 back, though. I could have spent that time listing something else for sale. They want to make it difficult, if not impossible, to get that $0.30 back. $0.30 isn't much for one seller, but it adds up to millions of dollars of additional profit for Paypal every year.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Vintage Touch
Web Site

Tue Apr 22 10:08:46 2014

I have to say amen to the comment by Moonwishes that selling on eCrater has always been above board - they are very accurate in billing for their marketplace fees and any cancelled order or transaction that is not completed for whatever reason is NOT charged a fee.  We only pay a small fee on sales that come through the marketplace - other than that, paypal that is our only overhead cost to do business on eCrater.  

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: Gina This user has validated their user name.

Tue Apr 22 10:42:15 2014

Bonanza credits you back the fees after a non-paying buyer....IF YOU CAN FOLLOW THEIR CONVOLUTED PROCEDURE!  Following in footsteps....

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: RCL This user has validated their user name.

Tue Apr 22 10:48:22 2014

I must be special. When I have a sale cancelled and refund the buyer the sales price (upon receipt of the item) my fees at both places are recovered.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: bitbybit

Tue Apr 22 12:31:21 2014

@Marie

This is incorrect when it comes to defects with refunds based on cancelled transactions. Ebay is showing a defect in cancelled transactions even though no case, no dispute and no cancelled transaction was opened.

Buyer's item was damaged in shipment and buyer EMAILED me directly (not through ebay's message system. She sent photos of damaged item,I filed with USPS an insurance claim and buyer was refunded in full back to her Paypal account. How did this become a cancelled transaction and even a cancelled transaction due to being out of stock or sold to someone else?  

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: Carol This user has validated their user name.

Tue Apr 22 17:23:47 2014

Not sure I understand the OP's point.  As far back as I can recall, there have been no automatic refunds of fees on ebay (except for nonpaying bidder situations).

If as a seller, you send the buyer a refund for whatever reason, you also have to cancel the transaction; after that's done, ebay does refund your fees.  A call to ebay is not required.

Paypal does refund all of the fee you paid them automatically except for the per-transaction fee (which I believe is $0.25).  That fee isn't refunded.  If you properly cancel a transaction, this is the ONLY fee you lose.

Defects are a separate subject.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

by: thebobman This user has validated their user name.

Tue Apr 22 22:37:34 2014

If a buyer buys something and wants to cancel, I refund everything but the 30 cents. I explain how paypal keeps that and I never get to touch that. Also, I sometimes explain that their payment was the first of the day and thats all the money I had in my account, to refund the full amount, it would have to come from my bank account and take 4 days to process rather than instant.  

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Rexford

Wed Apr 23 07:52:27 2014

I have been told on 3 different occasions recently by PayPal CSR that if I refund via PayPal, and no case is opened, that there is no defect issued and eBay and PayPal fees are returned to my account.  I've been calling each time I've refunded to make sure that this is the case, and I will continue to do so.

Now whether this is actually true or not who knows, but this is what three different CSRs have told me.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Marie

Thu Apr 24 08:49:39 2014

@bitbybit

I was talking specifically about defects due to a cancellation claim.  If you don't file for a cancellation, you can't get a defect because of a cancellation.

You appear to be talking about doing a refund to a buyer without ever seeking to get your FVFs back via a cancellation.  And yes, unfortunately Ebay considers the action of refunding a buyer fully as a defect unless you do the cancellation with the reason being at the buyer's request.

If you only do the FULL refund, they consider it a defect.  You have options however.

If the refund was prior to shipment, do the cancellation as well as the refund and make sure you click the proper reason, like buyer changed mind or whatever.  But make sure it is not Out of Stock or you sold it to someone else.

Or if you have no desire to get your FVFs back, don't refund in full.  Refund less a dollar or some small amount.  That will not trigger the defect.  It is the FULL refunds that do.

Or if you don't care about the PP fees either, you can just send money and not do it from the transaction in PP.

This defect policy is largely unfair and puts buyers and sellers into conflict many times when it simply is not necessary.  But for sellers to protect themselves they have to offer LESS customer service.  Ebay is just not smart enough to see it.

eBay Keeps Fees on Refunded Purchases   eBay Keeps Fees on Refunded Purchases

This user has validated their user name. by: Puck

Fri Apr 25 18:45:40 2014

eBay - With flash cookies and other spyware even marks the sparrow's fall.

aka - Big Data.



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