(Topic ID: 258246)

Paypal - Seller Beware - Refund of payment - Fees go to seller

By Barakawins1

4 years ago


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  • 60 posts
  • 24 Pinsiders participating
  • Latest reply 4 years ago by phil-lee
  • Topic is favorited by 1 Pinsider

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    There are 60 posts in this topic. You are on page 2 of 2.
    #51 4 years ago
    Quoted from Barakawins1:

    Yes. They should do that for free. I'll give you an example as to why and how. A buyer sends you payment for $5000. It should only be $500. An honest seller
    refunds this payment immediately. However, the way paypal works is they nail the seller for the buyer's mistake and in this case charge the seller 2.9% and .30
    or $145.30 immediately because of the seller's mistake. They are basing their fee on a fictitious sale amount. So, because the buyer makes the mistake and
    the seller makes the refund in a second, the seller loses $145.30 in a second. This is wrong at all levels. There should be a standard transaction fee which is not
    based on the amount of a sale. Next, paypal should not be allowed to remove $5000 from your bank account and place it into your paypal balance, less the fees
    they deducted. They should only be able to deduct a processing fee. This is why no one should link their bank account.

    Agree. If you are a seller, ONLY link to a CC that has a low and strict transaction limit. Then, you have some recourse if the above happens. I understand not using it because of the principal of the thing but for transactions under $100, sad to admit that Paypal is a necessary evil.

    There is no reason to tie a bank account to Paypal. I learned this over 10 years ago when they started putting random "holds" on my transactions for no reason at all. I immediately stopped all that nonsense. If there is a hold or reversal now, it's linked to a CC with a $50 limit.

    One additional benefit to having a Paypal debit card is that you can instantly empty your account at any casino ATMs that charges a $4.99 fee. I will gladly pay that fee to empty the account. Makes me nervous having more than a $200 paypal balance at any given time. They are NOT a bank and are NOT insured by the FDIC.

    I have $50 limit on anything "linked" to Paypal but no limit on inbound transactions.

    If anyone needs any advice on other safe ways to get around fees and other systems, shoot me a PM.

    #52 4 years ago
    Quoted from cottonm4:

    If you want to sell a pin, just use a bank wire. All of the risk is on the buyer. I have bought 2 pins like this. The bank only charged me $20.00 for the transaction. Once the money is transferred into your account only you can touch it.
    As a buyer you want to make damn sure that you can trust your seller because a shady seller can stick it to you. I had good creds on both of the sellers for the pins I bought.
    As a seller, I would not hesitate one bit to accepting a bank wire.

    Quoted from PinballTilt:

    If buyer overnights a check to your bank and you don't check the transaction record to see it was a check, you can still get screwed. That's because some people could see their balance go up, assume it was the wire, send the item, then the check bounces. Read this in Vid's guide.

    We are talking about two different items. A bank wire is nothing to do with overnighting a check.

    A bank wire is a direct transfer on money from my account to yours. To do a bank wire, I have to have your name, your bank, and your bank account number. After I sign the paperwork, my bank person makes a couple of keystrokes and the money is in your account. And your banker cannot send it back unless you sign some paperwork on your end.

    #53 4 years ago
    Quoted from bonzo442:

    My daughter needed some money & she’s in a different state so she told me to use zelle which I used through my Chase account but I think both parties have to be chase customers. No fees but I don’t know all the in & outs/limits even if both parties happened to have chase accounts on a pin sale

    Zelle can be used across many banks now. It’s instant in most cases and can not be reversed. No fees, but there are daily limits, usually pretty low, like $1000.

    #54 4 years ago
    Quoted from Barakawins1:

    Yes. They should do that for free. I'll give you an example as to why and how. A buyer sends you payment for $5000. It should only be $500. An honest seller
    refunds this payment immediately. However, the way paypal works is they nail the seller for the buyer's mistake and in this case charge the seller 2.9% and .30
    or $145.30 immediately because of the seller's mistake. They are basing their fee on a fictitious sale amount. So, because the buyer makes the mistake and
    the seller makes the refund in a second, the seller loses $145.30 in a second. This is wrong at all levels. There should be a standard transaction fee which is not
    based on the amount of a sale. Next, paypal should not be allowed to remove $5000 from your bank account and place it into your paypal balance, less the fees
    they deducted. They should only be able to deduct a processing fee. This is why no one should link their bank account.

    I think it's worth discussing the separation of payment processor from merchant. You as a merchant have hired PayPal to be your payment processor. There are other payment processors out there, but you've chosen PayPal because they have an enormous reach and make the process of accepting money really easy for you. As someone else put it, a necessary evil. I encourage you to shop around routinely for payment processors, there are lots and they all have different pros and cons.

    In the situation you outlined, I imagine it would be up to you to contact your customer and explain that you think they should reimburse you the fee because it was their mistake. If I was a customer who did that, I would expect to pay for my mistake.

    Nowhere in those transactions did PayPal make a mistake. Their system worked exactly as they advertise and provided you a secure way to accept money.

    I don't mean to seem like I'm a super fan of PayPal, because they certainly have flaws like any payment processor does. But you make it seem like they are doing you a disservice for implementing what is standard procedure with most payment processors. I don't see how a mistake made between you and your customer is PayPal's fault.

    PayPal also has an invoice system you can utilize to make sure people are paying the proper amounts.

    I encourage you to google "interchange fees" to understand more about why these transactions, including refunds, have to cost money.

    #55 4 years ago
    Quoted from Barakawins1:

    Yes. They should do that for free. I'll give you an example as to why and how. A buyer sends you payment for $5000. It should only be $500. An honest seller
    refunds this payment immediately. However, the way paypal works is they nail the seller for the buyer's mistake and in this case charge the seller 2.9% and .30
    or $145.30 immediately because of the seller's mistake. They are basing their fee on a fictitious sale amount. So, because the buyer makes the mistake and
    the seller makes the refund in a second, the seller loses $145.30 in a second. This is wrong at all levels. There should be a standard transaction fee which is not
    based on the amount of a sale. Next, paypal should not be allowed to remove $5000 from your bank account and place it into your paypal balance, less the fees
    they deducted. They should only be able to deduct a processing fee. This is why no one should link their bank account.

    Well, then don't receive the money.

    This is something I ran into the other day when I was getting two different refunds. This is something I have not seen on PP before, but I get the email that money has been transferred to my account. It used to be when I looked the money was there. Now the money has arrived but I have to receive it. I don't know what happens if I do not receive the money, but your might wish to call PP and find out what is up. Maybe it is a new way to help with buyer mistakes. I don't know. But it probably worth a phone call.

    BTW: One of the refunds was from CPR for a repro play field purchase that did not work out on CPR's end. I don't know if PP charged CPR a refund fee, or not, but I was made whole.

    Quoted from Barakawins1:

    There should be a standard transaction fee which is not
    based on the amount of a sale

    That would be nice. Sell a $5,000.00 pin and only pay a $5.00 transaction fee. Sort of like Craigslist letting you advertise for free. But try telling that to any auctioneer or real estate person around the country; Maybe the world.

    Quoted from Barakawins1:

    Next, paypal should not be allowed to remove $5000 from your bank account and place it into your paypal balance, less the fees
    they deducted. They should only be able to deduct a processing fee.

    This is a guess that I mentioned earlier. If PP came into your account and pulled just a processing fee and did this without leaving a note somewhere, then you would be looking at your account trying to figure out Why TF PP is jerking with your account. The way PP is doing it links the PP commission to the amount of money involved. And you are made actively involved as you are required to do something to return the money to your account which would prevent you from claiming ignorance on the money transfer.

    #56 4 years ago
    Quoted from Barakawins1:

    However, the way paypal works is they nail the seller for the buyer's mistake and in this case charge the seller 2.9% and .30
    or $145.30 immediately because of the seller's mistake.

    I think you meant to say "Buyer's mistake".

    I'm looking at your numbers. A fee 2.9% fee of $145.30 equates to a $5000.00 base price. Did you get $5,000.00 for the Nine Ball you have up for sale?

    That would be a nice chuck of change for a Nine Ball? I don't see any sale pending but thought I would ask. If you don't mind my asking, what kind of fee does Pinside get on a $5,000.00 sale?

    https://pinside.com/pinball/market/classifieds/ad/88484

    BTW: I also notice your have never had a Red Heart next to your pinside name. You should consider becoming a paid up pinside member and contribute to the cause.

    #57 4 years ago
    Quoted from jfh:

    Not true. There is no fee on F&F payments unless the remitter funds the transaction with a credit card.

    not true, just paid with my paypal balance (F&F) and fees were charged

    #58 4 years ago
    Quoted from benhardy:

    not true, just paid with my paypal balance (F&F) and fees were charged

    You can use a source other than a credit card and not pay a fee for F&F. Someone has to pay the credit card fee. I wouldn’t recommend a checking account though.

    #59 4 years ago
    Quoted from cottonm4:

    I think you meant to say "Buyer's mistake".
    I'm looking at your numbers. A fee 2.9% fee of $145.30 equates to a $5000.00 base price. Did you get $5,000.00 for the Nine Ball you have up for sale?
    That would be a nice chuck of change for a Nine Ball? I don't see any sale pending but thought I would ask. If you don't mind my asking, what kind of fee does Pinside get on a $5,000.00 sale?
    https://pinside.com/pinball/market/classifieds/ad/88484
    BTW: I also notice your have never had a Red Heart next to your pinside name. You should consider becoming a paid up pinside member and contribute to the cause.

    And cotton had to go all out.. LOL!!

    #60 4 years ago

    A Company that does exactly what they say they will do, spelled out in their Terms. Bloodsucking chiseling crooks, hard pass. Like every other thing in this World, starts off with good intentions then they begin shafting their Customers.
    They decide IF and WHEN you get your money.
    They don't like your conduct they CANCEL your account and HOLD your money.
    And they want to be a Global source for financial transactions?

    There are 60 posts in this topic. You are on page 2 of 2.

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