PayPal Refund? No Refund of Processing Fees! How do YOU like to pay?

DaveC

Industry Expert
Nov 16, 2014
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Starting October 11th Paypal will no longer refund transaction fees (~3%) if the transaction is cancelled or refunded. So, for a $1000 sale the vendor loses that sale + $30, and now maybe has to sell the item as "open box" and then has to pay the fees twice when the item is resold.

Personally, I have not had a return in about 5 years but I take deposits for demo cables via paypal, which I won't be able to do anymore. I also can't absorb the fees and will have to make buyers agree to pay paypal their 3% permanently. I think this will discourage use of Paypal. I've used Paypal with no issues for about 15 years now and am in their top level of sellers, which is nice but this policy change upsets me and has me looking for payment options that will refund processing fees.

I think Amazon Pay will become more popular now and plan on offering it, but I'd like to ask WBF members how they like to pay? Please respond and let me know what payment options you'd like to see in place of PayPal?
 
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SCAudiophile

Well-Known Member
Sep 11, 2010
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Greer South Carolina (USA)
Previously Paypal however this latest news is not good for anyone who sells anything there or for anyone who buys for related reasons.

Agree with you that Amazon Pay looks like an attractive option.

For people I know I utilize Wire or Zelle between banks but those are few and far between.
 
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Steve Williams

Site Founder, Site Owner, Administrator
Have the client remit "as a friend or relative" to your PayPal account.
 
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DaveC

Industry Expert
Nov 16, 2014
3,648
1,700
445
Previously Paypal however this latest news is not good for anyone who sells anything there or for anyone who buys for related reasons.

Agree with you that Amazon Pay looks like an attractive option.

For people I know I utilize Wire or Zelle between banks but those are few and far between.

Thanks! I'll check those out and I plan on offering a wire transfer option on checkout, my web guy seems like he's on top of it! ;)

Have the client remit "as a friend or relative" to your PayPal account.

This can work but I don't like making payments that are business expenses and if you ask a customer you don't know to use f&f you are asking them to completely forfeit any rights they have to buyer protection. I also wonder when PayPal is going to send me a notice that I use it too much! ;)
 

Steve Williams

Site Founder, Site Owner, Administrator
Thanks! I'll check those out and I plan on offering a wire transfer option on checkout, my web guy seems like he's on top of it! ;)



This can work but I don't like making payments that are business expenses and if you ask a customer you don't know to use f&f you are asking them to completely forfeit any rights they have to buyer protection. I also wonder when PayPal is going to send me a notice that I use it too much! ;)
I’ve never had a problem.
 

DaveC

Industry Expert
Nov 16, 2014
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I’ve never had a problem.

Good to hear. Since PP has done this and I'll have multiple payment alternatives maybe I'll just only take f&f payments. :) I have a feeling PP would certainly contact me when my f&f activity gets into the 6 figures. ;)
 

Elliot G.

Industry Expert

DaveC

Industry Expert
Nov 16, 2014
3,648
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445
when you do this YOU also have no protection if the customer is fraudulent.

Customer has no rights w/ f&f payment, it's like giving someone cash so they can't file a case with paypal and say the item is missing, damaged or not-as-described... but if they use a credit card that's charged back I assume seller would lose that money with no recourse, is that what you're saying?
 

dminches

Well-Known Member
Oct 22, 2011
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As a buyer I would not pay via f&f unless I have a pretty good track record with that person.
 

Steve Williams

Site Founder, Site Owner, Administrator
As I said I’ve never had a problem. An invoice is sent and payment is requested as F&F. Once payment is received each shipment is sent with a tracking number and a signature request upon delivery.
 

WLVCA

Member Sponsor
Nov 2, 2012
3,684
2,149
700
Tucson
No Friends and Family payments for me either - unless I already have a relationship with the person. You have no recourse if there is an issue.

I was trying to buy an item on Head-Fi yesterday and the seller insisted on a Friends and Family payment. I walked away from the deal.
 
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jtinn

[Industry Expert]/Member Sponsor
Apr 21, 2010
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Steve Williams

Site Founder, Site Owner, Administrator
I guess it all depends on what you’re selling. I’ve never once had a problem

I must be lucky as I’ve been doing this for years.

BTW if you use PaYPal invoices there is no way as F&F ( duh)

so I use external invoices and either bank wire transfer or PayPal as a F&F for receipt of funds
 

bazelio

Well-Known Member
Sep 27, 2016
1,719
1,055
245
California
Have the client remit "as a friend or relative" to your PayPal account.
This is not a good practice. Friend payments are not to be used for merchandise purchases per PayPal policy. PayPal can easily catch wind of it. And besides, it just looks sketchy to the customer. Why would a client agree to forfeit both PayPal and credit card purchase protection? I wouldn't agree to commercial transactions using this method. Nobody should.

Instead, raise your prices by adding a $5 handling fee to each transaction, or something along those lines. Build up a cushion for the rare but eventual refunded transaction. But don't go all sketch city on us. :)
 
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asiufy

Industry Expert/VIP Donor
Jul 8, 2011
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San Diego, CA
almaaudio.com
Just don't use Paypal :)
 

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