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Sat Jan 11 2020 23:04:34

How to Cope with PayPal Fee Retention Policy for Returns?

By: Reader

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Dear Ina,
Thank you for always keeping us up on all the latest, good and bad.

I have a question...how are other dealers handling the new return policy on PayPal, with their customers making returns?

Since they are not returning all the fees, how do we pass this to the customers without getting them too pissed off.

I do not think it is fair, but I know I cannot afford to eat them. 
Marsha



Comments (21) | Permalink

Readers Comments

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: Marie

Sun Jan 12 01:52:20 2020

You have no ability to pass that on to the buyer in which has filed the return.  

If you get enough returns for this to be a real issue for you then you need to raise your product pricing to allow for these new expenses.

Kind of like if when carrier rates go up later this month.  We need to increase S&H to cover the additional costs to include the fees that come with it.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: Utopia Computers This user has validated their user name.

Sun Jan 12 08:29:03 2020

We just recently found out that eBay is NOT returning FVF for cases related to unauthorized payments purchases. We sold an item for 219.00 that was delivering to a shipping forwarder, our 1st flag as we do not accept any PayPal international payments, therefore no need to use a forwarding company. The PayPal account holder opened a case as unauthorized user. We immediately issued the refund however we got an email from eBay that stated "We have credited all associated fees except for payments processing fees and the final value fee for your listing(s)". What the heck, I have to pay PayPal processing fees and eBay's FVF for something that we had no control over? eBay needs to allow sellers to set their account to "Authorize Only" and once an item ships, the seller can transaction to Capture to have the funds deposited into the account. This will avoid the PayPal processing fee but not sure what to do about the eBay FVF. Of course when I called I got a person overseas that had no clue as to what I was talking about.  

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: pace306 This user has validated their user name.

Sun Jan 12 09:45:09 2020

The criminal mafia organizations that “run eBay and its associated companies “ always” make sure THEY don’t loose money - it’s just fine if YOU do.

It’s “you fault “ for getting involved with CA’s biggest crime organizations (mine too)

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: Marie

Sun Jan 12 13:23:03 2020

@utopia
Ebay has never given sellers the ability to block all international buyers.  We can only block international sellers that do not have a US ship to address.  Most times that is a freight forwarder, but not always.

So in the world of Ebay, cancelling a sale solely because it was an international buyer is not one they allow without consequences.  To claim it is because of the ship to address would be wrong since it is within the rules of Ebay.  I'm not saying this is the right way to handle this, I'm just saying it is how Ebay currently works.

So to Ebay your transaction was not "unauthorized", it was within the current rules.  You as a seller just prefer not to ship to international buyers no matter their ship to address.  I respect that, it is just Ebay has never allowed such a block.  It isn't new.  This is how it has been.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: Shanna This user has validated their user name.

Sun Jan 12 13:57:17 2020

Ebay could end this today. Other large retailers that use Paypal, notably Walmart and Home Depot, do not pay the fee on returns. I am sure eBay provides more business to Paypal than everyone else combined.  One call from the CEO saying stop it would be all it would take. But the eBay leaders are just as corrupt as the Paypal ones.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: purpleiris This user has validated their user name.

Sun Jan 12 16:04:57 2020

I don't cover expenses of returns from people who have bad shopping habits. I provide everything they need to know about a product BEFORE buying it. So, there should be no reason for them to return something and that's most likely why I've never had a return.

If you're having a problem with multiple returns, then you should consider what the cause is. Could you provide better photos and descriptions? Do your terms need tweaking? Are you selling on a site that encourages fraud? Once you've determined what the problem(s) is/are, then you can do something about it.

As for general returns, I would simply withhold the cost of shipping and the payment processing fees incurred from the refund. I honestly don't care if that customer never returns, as a result, because they just got a lesson that will hopefully teach them to practice better shopping habits. Bad behavior should never be rewarded.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: purpleiris This user has validated their user name.

Sun Jan 12 16:09:08 2020

I should add that you should also consider the cost of the payment processing fees when tallying up the insured value of a package. That way you're covered in the cases of damaged or lost shipments.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: Utopia Computers This user has validated their user name.

Mon Jan 13 03:25:57 2020

@ Marie
Our PayPal account is set not to allow non US payments, therefore there is no reason for a international person to have a US issued credit card. When we get an order shipping to a forwarder, we normally cancel the order in eBay and select that there is a problem with the shipping address. At that time, we do get the FVF returned but the account owner filed a dispute with PayPal as the account was hacked before we had a chance to cancel the order in eBay.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: Chicago48 This user has validated their user name.

Mon Jan 13 06:28:11 2020

As a seller, I don't worry over this little stuff, and I consider it little stuff. I make adjustments to prices to cover little stuff like that.   Nothing the OP can do.  Except file a small claims , a BBB complaint, or a AG complaint.  The other alternative is to start your own website on a platform like Shopify or Wix.  

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: LasVagueness

Mon Jan 13 07:23:49 2020

I have a solution (keep reading).

My first return under this new policy cost me $9 while the second cost $24. I filed a BBB complaint for the first transaction after wrangling with PayPal to no avail. The second time it happened I withheld the PayPal origination fee from the return. All my listings have a disclaimer that I will not be returning PayPal’s origination fee for returns. Still, this prompted me to call PayPal to unload over this new policy. Three hours later after multiple transfers I had...

THE SOLUTION: Downgrade your PayPal account from a business to a personal account. Personal accounts are exempt from the origination fee deductions. This may not work for everyone but it solved my problem. Plus my $9 was refunded by the last PayPal rep I spoke with. Was it worth the three hours and gnashing of teeth? Yes, as I was finally presented with a permanent solution.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: cvsharkey This user has validated their user name.

Mon Jan 13 07:47:42 2020

I recently purchased a ticket for a class. The class was cancelled by the teacher--who then refunded my price. But PayPal kept the fee associated with the ticket transaction. Now, I don't know if they also charged the teacher. But as the buyer I don't believe I should have had my fee kept by PayPal. What do you think?

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: Mark4 This user has validated their user name.

Mon Jan 13 07:55:38 2020

As far as ebay goes (almost done with them) we are stuck, as far as our personal websites which account for 80% of our business now we threw paypal off them and went with Square who refunds our fees when there is a return. Paypal's loss as we do over 3 million in sales annually off those sites. We also let everyone we know and come in contact with to avoid paypal as they are stealing fees.  

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

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

Mon Jan 13 08:44:57 2020

I have a NO RETURN policy and it has been challenged by ebay and other sellers on ebay more than once as far as being a good idea.  But for me it works great.  It cuts down on silly returns.  Good buyers think twice before returning something if it costs them and its a silly reason for a return.  I of coarse take returns if there is damage or dissatisfaction with the item.  The key is to not enable bad behavior from buyers.  They need to know that we are business people, we have money invested in our inventory and we only take returns when there is a stable valid reason.  

I always give honest and detailed descriptions in my listings so there should not be a problem with a return unless something out of the ordinary happens in shipment, etc.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: wellspring This user has validated their user name.

Mon Jan 13 08:49:09 2020

As long as ebay keeps dangling “similar, possibly cheaper” items in front of buyers “after” the buyer has paid, only to result in immediate buyers remorse and cancellation”, ebay should eat the cost of PayPal fees refunded/cancelled transactions as ebay is the cause and effect!! Shame on ebay and PayPal! It should be illegal to keep fees on orders cancelled before shipped!

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: Marie

Mon Jan 13 12:37:24 2020

@LasVagueness

Doesn't a Personal Account on PP limit your ability to accept CC payments from customers?

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: cellular-seller This user has validated their user name.

Mon Jan 13 12:42:23 2020

Everyone loses in a failed transaction - return.  Why does paypal think that they should be insulated from the risks associated with returns - refunds?  
EVERYONE ELSE has to return fees associated with refunds.
1. Ebay has to return FVF
2. Seller has to sacrifice the profit from the sale
3. If a buyer refuses a postal item & it is returned unopened, the postal service loses return postage fee.

WHY SHOULD PAYPAL KEEP THE FEE?

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: LasVagueness

Mon Jan 13 13:25:50 2020

@Marie In what way? I was told nothing would change but perhaps you have another angle on this issue. I keep my transactions under 200 annually.

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: Marie

Mon Jan 13 13:51:05 2020

@lasvagueness

I thought the changes they had to make last September to personal accounts changed them a great deal.  Since I haven't had a personal account is years I don't have any experience with it, so I will defer to you on this.

https://www.paypal.com/us/webapps/mpp/ua/cashagreement-fu
ll

https://www.paypal.com/us/smarthelp/article/does-paypal-offer-different-types-of-accounts-faq2347

https://www.paypal.com/us/webapps/mpp/ua/useragreement-full

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

This user has validated their user name. by: LasVagueness

Mon Jan 13 15:39:56 2020

@Marie I reviewed the links and my takeaway was that while PayPal *recommends* a business account it is not required. Downgrading from a business account to a personal account resolved the issue of PayPal keeping the origination fees for returns. I am so disenchanted with PayPal that I plan to use their service as little as possible going forward. Thank you for your links and contributions!

Perminate Link for How to Cope with PayPal Fee Retention Policy for R   How to Cope with PayPal Fee Retention Policy for R

by: 360 ID Tag This user has validated their user name.

Mon Jan 13 21:55:56 2020

Managing returns and preventing fraudulent ones is the reason we created the 360 ID Tag. I am an ebay seller and I was concerned about the risk of wear and return/wardrobing and the subsequent fees associated with returns so came up with a flexible use tag to loop through clothing, shoes, accessories etc and seal with a tamper-evident security seal that can be cut if the buyer chooses to keep the item or left on if they want to return it. It still allows the buyer to try on the item for fit, but social norms prevent them from wearing it out. Can be used on new or preloved items where there are no manufacturers tags. By deterring would be frausters from engaging in returns-fraud we can minimize the risk of getting a return and can avoid Paypal keeping the transaction fee.

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