US buyer purchases off .CA in $C, I refunded overpaid shipping, they end up with $C refund..

[ricarmic]

I'd like to know if anyone knows the process for this.

US Buyer purchased a multitude of $C items off my .CA store, he couldn't request a combined invoice, so he purchased and I refunded the overpaid shipping.

He advised that it came back to his account as $C, which makes sense because that is what it was when it came to me.

I didn't think we could hold multple currencies, but I'm not sure how it looks from a "buyer" perspective.

I'm assuming when he wants to buy something US$ it will just use the $C at the converted to US$ rate first and then bill him for the rest in US$ as usual.

Does anyone know what actually happens in MPland for cross currency refunds now?  

[recped]

Buyers are refunded via the payment method they originally used.

If they used a credit card they would pay you in Canadian Dollars their card company would convert this to US Dollars which would show up on their next billing statement. When the credit is given it would be in Canadian Dollars, their card company would convert this to US Dollars which would show up on their current billing.

If they paid from a PayPal balance the refund MIGHT be returned to them in CAD (if they have CAD as one of their active currencies), or converted to USD if they don't.

The issue in this case is likely that the buyer has no idea what currency they actually paid in. While US Dollars are being used for the payment the buyer may be unaware they were actually paying in CAD.

Not sure if it's true in your case but many US buyers have no idea that not all "dollars" are created equal or that it's even possible for another country to have a currency with the name "dollar" that isn't the same as "US Dollars".

[ricarmic]

The buyer understands, they purchased a big batch of US$ and $C separately, as they have to do.

I didn't think to ask them how they paid, I'll ask them that.....I expect it is probably PAYPAL.

[lotzofuniquegoodies]

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@ricarmic wrote:

The buyer understands, they purchased a big batch of US$ and $C separately, as they have to do.

I didn't think to ask them how they paid, I'll ask them that.....I expect it is probably PAYPAL.

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I had a situation a few months ago for a relatively low priced item with the usual crazy GSP shipping attached. Once the seller figured out that there was an issue with sending out anything in a shipping tube (The shipping was way more than quoted for shipping) the seller cancelled and refunded. By the time refund had been processed the amount amount returned was 5 or 6 bucks less because of the exchange rate. Higher value items or anything super heavy to ship and these discrepancies would be much higher. Not sure how often, if ever a buyer would in theory "win" on a refund?

Going forward as sellers we truly have no idea what rate was applied for the original purchase or what rate will be used whenever down the road for the various situations. Unfortuately there will be parties irritated however this goes down because of this lack of transparency.

-Lotz

PS. In the past were refunds ever based on original exchange rate or was it always a very limited time situation? Reason number 52 why I liked being able to carry 2 currencies with PayPal.