PayPal fees when buyer ask to cancel an order

Hey guys!

 

I very often have buyers buy something and message me telling me they placed this order by mistake, clicked the wrong button etc.

 

Will I lose money everytime this happens now that PayPal says they won't refund PayPal fees?

Message 1 of 14
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13 REPLIES 13

Re: PayPal fees when buyer ask to cancel an order

So they pay before they realize it was a mistake?

Typically this is only an issue for returns.
Message 2 of 14
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Re: PayPal fees when buyer ask to cancel an order

Oh so you think it's only applicable when the product is actually being returned?

 

So I wouldn't lose anything if I refund a buyer wthin a few hours and nothing had been shipped yet?

Message 3 of 14
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Re: PayPal fees when buyer ask to cancel an order

No, i think you'd still lose those fees. My point was most of the "mistake", "pressed wrong button", "changed mind" purchases aren't typically paid for.
Message 4 of 14
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Re: PayPal fees when buyer ask to cancel an order

@vip-marketplace 

 

Just received from PayPal:

 

We recently updated our User Agreement in select markets to reflect changes to our refund policy. This is a friendly reminder that, as of May, 19th 2020, these changes will go into effect globally.

In line with industry practice and according to our updated policy, we will not charge a fee to process refunds; however, fees from the original transaction will not be returned. This policy will not apply to duplicate transactions or voids. You can review the PayPal User Agreement for more information on our return policies.

We take changes to our User Agreement very seriously and only adjust our policies when we are confident the changes are fair and aligned with the value that our services provide to your business.

If you have questions about any of these changes or your account, please don’t hesitate to get in touch with us.

Thank you for being a PayPal customer. We value your business and look forward to continuing to help you grow and succeed in the future.

The team at PayPal

 

-Lotz

Message 5 of 14
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Re: PayPal fees when buyer ask to cancel an order

@vip-marketplace 

 

Just received from PayPal:

 

We recently updated our User Agreement in select markets to reflect changes to our refund policy. This is a friendly reminder that, as of May, 19th 2020, these changes will go into effect globally.

In line with industry practice and according to our updated policy, we will not charge a fee to process refunds; however, fees from the original transaction will not be returned. This policy will not apply to duplicate transactions or voids. You can review the PayPal User Agreement for more information on our return policies.

We take changes to our User Agreement very seriously and only adjust our policies when we are confident the changes are fair and aligned with the value that our services provide to your business.

If you have questions about any of these changes or your account, please don’t hesitate to get in touch with us.

Thank you for being a PayPal customer. We value your business and look forward to continuing to help you grow and succeed in the future.

The team at PayPal

 

-Lotz

Message 6 of 14
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Re: PayPal fees when buyer ask to cancel an order

@teenytrinkets 

 

The revised refund policy should be available at the PayPal website. Effective May 19, 2020

 

-Lotz

Message 7 of 14
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Re: PayPal fees when buyer ask to cancel an order

@vip-marketplace 

So I wouldn't lose anything if I refund a buyer wthin a few hours and nothing had been shipped yet?

 

If the buyer paid before changing his mind, you will lose the 30c non-refundable fee, which is the current situation, and also the 2.9-3.9% fee on the payment.

 

Huh.

I was checking my numbers and found this:

https://www.paypal.com/ca/for-you/fees

Apparently for non-Canada sales we do not pay 30c per transaction but a "fixed fee based on currency". 

That's not reassuring at all.

Message 8 of 14
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Re: PayPal fees when buyer ask to cancel an order

 

I don't believe there is any need for concern unless something changes from this:

 

"For any of the following transactions that involve a currency conversion, the currency conversion fee is a minimum of 3.5% for Canadian or U.S. dollars, or a minimum of 4.0% for all other currencies, or such other amounts as may be disclosed to you during the transaction*:

  • Paying for goods or services in a currency other than the currency the goods or services are listed in.
  • Sending money to a friend or family member such that they receive a different currency from the currency you pay in.
  • Sending money using PayPal’s Payouts or MassPay products such that your recipients receive a different currency from the currency you pay in.

For all other transactions involving a currency conversion, the currency conversion fee is a minimum of 3.0%, or such other amounts as may be disclosed to you during the transaction*.

------

since I sell in USD and CDN and receive in CDN and USD that means the fixed fees are:

U.S. Dollar: $0.30 USD Canadian Dollar: $0.30 CAD

Message 9 of 14
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Re: PayPal fees when buyer ask to cancel an order

A lot of mixed information in this thread.  As one poster pointed out, PayPal will not refund the fees that they charge sellers STARTING MAY 19.  That would be the case whether the buyer wanted to cancel, in a return/refund situation and in most refund situations. If you refund a buyer before that date, you will lose the .30 transaction fee but will be refunded the 2.9%+ part of the fee.

Message 10 of 14
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Re: PayPal fees when buyer ask to cancel an order

Hi, this just happened twice to me this month, one buyer bought my item and told me by mistake, I lost $2.00USD instantly after I refund, another buyer bought my item and return it to me within a week, I lost $15.00 shipping and PayPal fee $13 = $28.00USD since the pandemic my business is not doing good, I don't know why PayPal policy will not refund the PayPal fee since the buyer doesn't want the order.. this is unfair policy.. sooner or later, the individual seller will no longer be interested using PayPal and eBay service... I NEED TO FIND ANOTHER PLATFORM to do business.

This is so unfair what they are doing stealing our money....

Message 11 of 14
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Re: PayPal fees when buyer ask to cancel an order


@leelee4me wrote:

... I don't know why PayPal policy will not refund the PayPal fee since the buyer doesn't want the order.. this is unfair policy.. sooner or later, the individual seller will no longer be interested using PayPal and eBay...


This a ZOMBIE thread.  Some of the old info details may be incorrect.

 

PayPal is independent of eBay.

PayPal is trying to be more bank like and is pushing more of the costs of doing business on to the client (in this case the Seller) rather than absorbing the cost themselves. All about PayPal's profits not about "fair".  Still an annoying fee policy.

 

eBay's Managed Payments which replaces PayPal supposedly* will refund fees.

 

* - have not converted to Managed Payments yet, so I do not know the fine details for MP refunds.

Message 12 of 14
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Re: PayPal fees when buyer ask to cancel an order

another buyer bought my item and return it to me within a week, I lost $15.00 shipping and PayPal fee $13 = $28.00USD

 

Yes.

If the buyer opens a Not As Described dispute (which implies that the seller is at fault) the cost of shipping is on the seller. For example, the buyer bought a red sweater and the seller shipped a blue sweater.

If the buyer asks for a return due to to Buyer Remorse (the red sweater is scarlet and the buyer wanted maroon) the cost of return shipping in on the buyer.

Most buyers will not admit to Remorse, because it costs them money.

 

We protect ourselves by using Cookie Jar Insurance, which is self-insurance, putting aside a small amount , in a virtual cookie jar, as an insurance premium against loss or damage in transit, slow delivery, our own mistakes, flakey customers, misunderstood descriptions-- anything that might go wrong.

 

With a $13 PP fee, you were selling an item for over $450? In a category like high fashion accessories, you are going to run into Buyer Remorse (and "rentals").  We have to build our annual cost for such problem buyers into our asking prices.
You've been  here since 2002, how often have you had this problem?
It's painful., but you have your item back and know you can resell it.

Message 13 of 14
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Re: PayPal fees when buyer ask to cancel an order

Hi everyone,

 

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

 

Thank you for understanding.

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Message 14 of 14
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