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If you haven't used Paypal in awhile...


Bernadette

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be prepared for a little shock....

I got an order at 2 am my time in my webstore. Upon looking at the order when I got up at 6 am, I saw it was from a competitor, and she had ordered a couple of items that I'm sure she was going to make molds from and sell on her site, because she had the rest of the line. She paid by paypal.

I keep a 0 balance in Paypal now that they're an eBay company. Every time I get a payment thru paypal, I immediately transfer it to my bank. Anyway, when I went into my account, there was her payment, so I went to details and refunded it. Immediately, I show a negative balance in my paypal account. Within 2 hours of receiving the order?!?!:angry2: So I click on the resolving negative balances link. Well, you're in trouble now if you have a negative balance and need to transfer money from your bank or send them a check!!!

I was ticked, so I called. Appears this policy went into effect in August. Any refunds now, and you have to pay a fee!!!:angry2: She took it off for me because I've been a member in good standing since they began. Just thought I'd give those that didn't know a heads up.

My direct credit card processor doesn't do that... you at least have a day to refund with no fees. I may just disable paypal for my site...boy!:tiptoe:

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I can't say that I always agree with Paypal's policies but in this case I have to side with them.

I received an email regarding the updated refund policy a month before it went into effect. I wasn't happy with it but I can't complain....

First, it should be clarified that you don't actually pay a fee to offer a refund...Paypal just isn't giving you a refund on the $.30 transaction fee that they charged for you to accept the payment. In the past, when offering a refund Paypal gave the merchant (yourself) a full refund on the fees that you paid them and then you refunded the full amount to the customer. Now, they refund the percentage that they charge but NOT the $.30 transaction fee. So, it costs you $.30 to send a refund no matter how large or small of a transaction...

You should keep in mind that with a typical REAL merchant's account you don't get any of your fees back from that transaction.....why should Paypal be any different. They do, after all, have fees associated with accepting the payment even if you do cancel or refund it. So, it'd cost you $1.00+ to offer a refund using your merchant's account depending on the transaction amount.

All in all, it's the cost of doing business.

I believe you can setup your Paypal account so that you have to accept the incoming payments before they are processed. I can't say for sure if this could help you avoid the $.30 transaction fee but it should.

Edited by southern.scents
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