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Major Paypal Change As Of May 7, 2019: They Are Keeping All Fees On Full And Partial Refunds

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Pillar Of The Community
United States
6432 Posts
Posted 04/04/2019   09:08 am  Show Profile Check revenuecollector's eBay Listings Bookmark this topic Add revenuecollector to your friends list Get a Link to this Message
FYI, as of May 7, 2019, PayPal will be keeping ALL fees on full or partial refunds.

So if you sell an item and it is returned, when you refund, entire refund amount will be taken from your account; no PayPal fees will be refunded.

Currently, while PayPal keeps the original $0.30 base transaction amount, the amount of the 2.9% (or other percentage) proportional to the refund is refunded by PayPal, not the seller.

This will be a major hit if an expensive item is returned.

https://www.ecommercebytes.com/C/bl...4227118.html

https://www.paypal.com/us/webapps/m...olicies-full
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Edited by revenuecollector - 04/04/2019 09:08 am

Bedrock Of The Community
12555 Posts
Posted 04/04/2019   09:55 am  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
Seems reasonable. If a seller has a high rate of returns something is amiss in the quality of their goods or their descriptions and Paypal should not be excepted to subsidize them.
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Pillar Of The Community
United States
6432 Posts
Posted 04/04/2019   10:00 am  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
The problem is that it has nothing to do with rate of returns at all; that I could understand.

This is for ALL returns, even the first. So if you have a buyer who didn't read the description, or just wants to return because they made a mistake (I've had that happen), the seller now eats all transactional costs and PayPal is profiting on transactions that effectively didn't occur.
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United States
635 Posts
Posted 04/04/2019   10:12 am  Show Profile Bookmark this reply Add modernstamps to your friends list  Get a Link to this Reply
revenuecollector,
Thanks for bringing this to our attention.
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Pillar Of The Community
United States
1414 Posts
Posted 04/04/2019   10:17 am  Show Profile Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply
PayPal refunds are often required after ebay botches combined shipping calculations. Costs will ultimately trickle down to buyers.
A seller could have policies like:

"Please wait for an invoice before paying. No refunds of PayPal paid excess combined shipping calculated by ebay."

or

"Items paid with PayPal are not returnable."

Other problems for buyers:

Does anyone know if ebay will allow partial refunds of excess shipping if managed payments are used?

or

How do buyers who process ebay returns through PayPal recover sales tax amounts collected by ebay?

Conclusion: Lose-lose for buyers and sellers.
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United States
2779 Posts
Posted 04/04/2019   10:34 am  Show Profile Bookmark this reply Add Battlestamps to your friends list  Get a Link to this Reply
I've have had that "wait or request and invoice if buying multiple items for years". Most buyers follow directions, but there's always the few who don't - usually a newbie who decides to buy and pay for 20 items separately. It's those buyers who are going to really screw with the sellers.

There needs to be an option where a buyer CANNOT pay until they receive an invoice from a seller. That's one thing Delcampe got right.
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Posted 04/04/2019   10:42 am  Show Profile Bookmark this reply Add 51studebaker to your friends list  Get a Link to this Reply
I doubt that ebay cares what PayPal is doing, they are going through a 'divorce'. Adyen's current refund policy
https://support.adyen.com/hc/en-us/...unds-Charges

https://www.ebayinc.com/stories/new...ce-platform/

Quote:
eBay will begin payments intermediation on the Marketplace platform on a small scale in North America starting in the second half of 2018, expanding in 2019 under the terms of the Operating Agreement with PayPal. In 2021, ebay expects to have transitioned a majority of its Marketplace customers to its new payments experience.

Don
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Pillar Of The Community
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1414 Posts
Posted 04/04/2019   11:36 am  Show Profile Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply
Don,

While May 7, 2019 may be a good date to switch to ebay managed payments, the Adyen return policy page was generic to the point of uselessness and contained at one broken link which went to a different generic page. Apparently, ebay can customize and control the refund process. Where does ebay document what they do, or do they make it up as they go along? The ebay page below may be helpful, but it is vague about refunds, refunds, time limits, compatibility with third party applications (API) or the ability to download transaction records. PayPal transaction history is available for the current and past years, with the caveat that non-balance affecting transactions obfuscates import into a spreadsheet or relational database.

https://pages.ebay.com/seller-cente...m22_tb_a9__2
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Edited by cfrphoto - 04/04/2019 11:37 am
Pillar Of The Community
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2115 Posts
Posted 04/04/2019   11:55 am  Show Profile Check Stamps1962's eBay Listings Bookmark this reply Add Stamps1962 to your friends list  Get a Link to this Reply
For the past several months I have been unable to access my Paypal balance to us to buy things on ebay. I can move the funds to my bank account but not to pay for a purchase. It does not appear as a payment option.
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Pillar Of The Community
United States
6432 Posts
Posted 04/04/2019   11:59 am  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
As a seller, I would NOT recommend switching to Ayden until PayPal is a supported payment option through Ayden, as there are many reports in the ebay community message boards about buyers being very unhappy when they go to pay only to discover PayPal isn't supported since the seller switched to ebay Managed Payments.

ebay and PayPal spent literally decades training buyers that PayPal was THE payment method of choice, and in most cases the ONLY accepted payment method, so that has set an expectation on the part of many buyers. Doing a complete reversal is doing no one any favors.

Additionally as a seller, once you switch to Ayden, you CANNOT switch back. It's a one-way trip.

Until all this Ayden-PayPal integration actually comes to fruition or sellers are prevented from accepting PayPal entirely, I would be very wary of changing the status quo on how you accept payments.

There's no good answer at this point. Each road is currently rife with potholes.
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Pillar Of The Community
United States
6432 Posts
Posted 04/04/2019   12:02 pm  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply

Quote:
For the past several months I have been unable to access my Paypal balance to us to buy things on ebay. I can move the funds to my bank account but not to pay for a purchase. It does not appear as a payment option.


Are you absolutely certain? ebay has hidden PayPal in the new checkout system. You not only have to log into PayPal to use it as your payment method, but even after that, depending on what funding options you have on file at PayPal, you may then additionally need to manually select your balance each and every time. It's convoluted and easy to miss.
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Bedrock Of The Community
12555 Posts
Posted 04/04/2019   12:18 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
Sounds like another reason to avoid it all.
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Pillar Of The Community
United States
6432 Posts
Posted 04/04/2019   12:34 pm  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
Great. Lovely. Your obligatory daily "I hate ebay and everything about it" post that serves no useful purpose other than shouting at clouds.

Thank you so very much for your contribution to the discussion.
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Bedrock Of The Community
12555 Posts
Posted 04/04/2019   12:48 pm  Show Profile Bookmark this reply Add rogdcam to your friends list  Get a Link to this Reply
Who mentioned ebay? This is about Paypal I thought. I really do not need the attitude from you Rev. It is uncalled for.
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Pillar Of The Community
United States
6432 Posts
Posted 04/04/2019   12:52 pm  Show Profile Check revenuecollector's eBay Listings Bookmark this reply Add revenuecollector to your friends list  Get a Link to this Reply
Oh please. Any time anyone mentions ebay you come in like clockwork naysaying anyone's use of it. The context of this discussion has been regarding ebay throughout, hence the discussion of Ayden.

Don't play the innocent martyr. You know EXACTLY what you're doing.
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Pillar Of The Community
United States
1414 Posts
Posted 04/04/2019   1:09 pm  Show Profile Bookmark this reply Add cfrphoto to your friends list  Get a Link to this Reply

Quote:
As a seller, I would NOT recommend switching to Ayden until PayPal is a supported payment option through Ayden, as there are many reports in the ebay community message boards about buyers being very unhappy when they go to pay only to discover PayPal isn't supported since the seller switched to ebay Managed Payments.


Thank you. In addition to missing PayPal, the ebay API is incomplete. The following quote is from SixBit support:


Quote:
Beginning May 1, 2019, ebay will no longer support electronic payments through a seller's Integrated Merchant Credit Card account. To accept online credit card payments from buyers, a seller must either specify PayPal as an accepted payment method or opt into the ebay Managed Payments program (currently only available to sellers in the US).

SixBit does currently support ebay's Managed Payments in terms of collecting the data that ebay returns to us for the payment processing aspect but there are still some gaps. In your case, once you make the jump to Managed Payments you/buyers may find noticeable differences in the checkout process and your combining process as it is now but, you may not. It's hard to say until you make the switch.

Currently, the Profit and Loss reporting on orders will not be accurate based on what ebay currently returns since the processing fees aren't being given from their API. We currently have a ticket open with them on this and is marked as "Awaiting Bug Fix". Additionally, if you rely on specific payment methods getting set on orders then this is another reason why you shouldn't make that jump yet because the specific payment type isn't given back via the API.

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