PayPal Refunds Will Really Cost You Now
If you haven’t heard yet, when PayPal did the latest policy update, they added a refund fee and will start charging it on August 10, 2010.
From the new policy:
- Amendment to the PayPal User Agreement
Refund Fee. Section 8.5 (Additional Fees) is amended to add a new refund fee. If you refund a Purchase Payment, we will retain the Fixed Fee portion of the Purchase Payment Fee. The buyer’s Account will be credited with the full Purchase Payment amount and the Fixed Fee portion of the Purchase Payment Fee will be deducted from your Account in addition to the amount of the refunded payment. The Fixed Fee will depend on the currency of the Purchase Payment and is listed in 8.4(c).
And:
Fees: The following fee for Refunds will be added:
Refund *
After August 10, 2010, the Fixed Fee portion of the Transaction Fee will be deducted from your Account at the time of the refund, in addition to full payment amount that is refunded to the buyer. Fixed fee portion of the original Transaction Fee.
(The Fixed Fee will depend on the currency of the payment, so if the payment was made in USD then the refund fee is $0.30.)
* Excludes Direct Payments and Virtual Terminal Payments where an American Express Card is used.
So now when you issue a refund you will lose a little money. Yes, it’s small amount and most people won’t lose over $50 or so a year.
Not really a big deal but some people might want to stop automatically refunding PayPal complaints and possibly other procedures.