Paypal won't refund sellers fees on refunds or returns starting May 7th
Just got this notice that starting May 7th Paypal will no longer refund sellers fees if a return or refund is made. Buyers still get a refund in full. So basically you would not be only out the return shipping cost but the 2.9% + .30 cents in Paypal fees. So for people who sell in volume and have a high return rate or are selling things at a high amount watch out.
Comments
It always seems I have several buyers a year ask to cancel a transaction after paying. So, now Im supposed to deal with the loss of fees. This is going to be frustrating for sellers.
Yea, I might have 1 or 2 max returns a year due some neglect on my part but cancelation before shipping may be 30+
They also changed the part where you can receive only 12 refunds per year as a buyer.
I'm willing to bet, and I seriously hope that this gets a class action lawsuit. By the way, doesn't ebay own PayPal? All part of the same crap. The real problem is there's no competition, if decent competition was available both ebay and crappy PayPal would change their tunes instantly. Now, for high end stuff there's Heritage, but most of us are not selling nor buying high end.
No, they don't. They sold off Paypal about a year ago, Paypal a stand alone company now.
I'm willing to bet, and I seriously hope that this gets a class action lawsuit. By the way, doesn't ebay own PayPal? All part of the same crap. The real problem is there's no competition, if decent competition was available both ebay and crappy PayPal would change their tunes instantly. Now, for high end stuff there's Heritage, but most of us are not selling nor buying high end.
As big as PayPal I don't think they are that stupid not to think it through. After all when you sign up for them you agreeing to their terms and conditions.
Here is their solution if you don't like something:
"We are updating the PayPal Account User Agreement for U.S. customers. These changes will go into effect on May 7, 2019. If you agree to these changes, you don’t have to do anything. If you don’t agree with these changes, you may close your account. If you close your account before May 7, 2019, the changes will not apply to you."
But if its not for a valid reason, it should not be implemented. Like buyer wants to cancel minutes after auction ends. This should only be for legitimate cases of getting something not as described or broken or something similar. If the item was packaged well, and post office went out of their way to damage it I can understand not sellers fault. But in a plain envelope, not even bubble wrap, that is different.
I kind of support this but see plenty wrong with it. I constantly have to return stuff because of sh*tty sellers, and there is zero incentive for them to get better because no cost to them, and i have to wait seven f*cking days to leave negative feedback and most people forget within that time. This last two weeks alone I have returned 4 games, because I order them new/sealed, and send a message please make sure packaged to prevent damage, will pay extra if needed. And I get it in a paper envelope crushed to hell, then have to return it. I am tired of ordering something knowing 75% of the time going ot have to return it. So if there is a monetary cost to them having to give refund, maybe they will start shipping like it matters.
But if its not for a valid reason, it should not be implemented. Like buyer wants to cancel minutes after auction ends. This should only be for legitimate cases of getting something not as described or broken or something similar. If the item was packaged well, and post office went out of their way to damage it I can understand not sellers fault. But in a plain envelope, not even bubble wrap, that is different.
Damn, man. Sounds like you have some shithouse luck!
I mean, we all experience the occasional need for return for whatever reason, but 75%?! 4 in the last 2 weeks?! Sounds a bit farfetched.
Originally posted by: buttheadrulesagain
As far as I see, paypal is not required as payment method, you can choose visa or mastercard instead. Ebay is ending its partnership with Paypal in 2020, replacing it with Adyen, so at that point sellers could just take other methods of payment, no?
I thought you could already accept payment via another aventue other than PayPal, but that could just be me assuming due to knowing you can pay via other means.
Either way, PayPal, while I will continue using them for now, is playing with fire and fucking with peoples finances with this change. What's to stop someone from getting a bunch of friends to buy stuff then return it immediately, dinging the seller for potentially hundreds in fees because they want to financially hurt the seller?
Also, is this just eBay seller fees, or all fees to the seller from any revenue souce (i.e., other e-commerce sites), and does this include PayPal's fee's as well? Regardless, this almost seems criminal.
As far as I see, paypal is not required as payment method, you can choose visa or mastercard instead. Ebay is ending its partnership with Paypal in 2020, replacing it with Adyen, so at that point sellers could just take other methods of payment, no?
I thought you could already accept payment via another aventue other than PayPal, but that could just be me assuming due to knowing you can pay via other means.
Either way, PayPal, while I will continue using them for now, is playing with fire and fucking with peoples finances with this change. What's to stop someone from getting a bunch of friends to buy stuff then return it immediately, dinging the seller for potentially hundreds in fees because they want to financially hurt the seller?
Also, is this just eBay seller fees, or all fees to the seller from any revenue souce (i.e., other e-commerce sites), and does this include PayPal's fee's as well? Regardless, this almost seems criminal.
Nothing can stop someone from getting a bunch of friends to buy stuff then return it immediately. It is for any refund made or return made on any site. Even on NA. If you return something on NA and paid through Paypal. Seller eats the Paypal fees. This has nothing to do with Ebay fees just Paypal fees. You would still get your Ebay fees or site fees back.
As far as I see, paypal is not required as payment method, you can choose visa or mastercard instead. Ebay is ending its partnership with Paypal in 2020, replacing it with Adyen, so at that point sellers could just take other methods of payment, no?
I thought you could already accept payment via another aventue other than PayPal, but that could just be me assuming due to knowing you can pay via other means.
Either way, PayPal, while I will continue using them for now, is playing with fire and fucking with peoples finances with this change. What's to stop someone from getting a bunch of friends to buy stuff then return it immediately, dinging the seller for potentially hundreds in fees because they want to financially hurt the seller?
Also, is this just eBay seller fees, or all fees to the seller from any revenue souce (i.e., other e-commerce sites), and does this include PayPal's fee's as well? Regardless, this almost seems criminal.
Nothing can stop someone from getting a bunch of friends to buy stuff then return it immediately. It is for any refund made or return made on any site. Even on NA. If you return something on NA and paid through Paypal. Seller eats the Paypal fees. This has nothing to do with Ebay fees just Paypal fees. You would still get your Ebay fees or site fees back.
Ah, gotcha.
So basically you're eating the service fee.
I mean, I get it. I'm sure they have to pay some sort of fee regardless of if your transaction went through or not. Still, I would hope they would have something in place for abuse.
So a person buys a 200 dollar system. Changes mind 3 seconds later. Seller loses 6 dollars.
This happens to me so much its stupid. People dont read.
Returns are now even worse. Lose return shipping and 3 percent.
Ebay took away restocking fees in there previous round of garbage mandate changes too so you cant even recoup anything
I kind of support this but see plenty wrong with it. I constantly have to return stuff because of sh*tty sellers, and there is zero incentive for them to get better because no cost to them, and i have to wait seven f*cking days to leave negative feedback and most people forget within that time. This last two weeks alone I have returned 4 games, because I order them new/sealed, and send a message please make sure packaged to prevent damage, will pay extra if needed. And I get it in a paper envelope crushed to hell, then have to return it. I am tired of ordering something knowing 75% of the time going ot have to return it. So if there is a monetary cost to them having to give refund, maybe they will start shipping like it matters.
But if its not for a valid reason, it should not be implemented. Like buyer wants to cancel minutes after auction ends. This should only be for legitimate cases of getting something not as described or broken or something similar. If the item was packaged well, and post office went out of their way to damage it I can understand not sellers fault. But in a plain envelope, not even bubble wrap, that is different.
"there is zero incentive for them to get better because no cost to them"
Doesn't the current system require the seller absorb the shipping fees both ways? That should be a greater deterrent than the PayPal fee.