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PayPal will also stop letting you refund the percent they take out so you will be holding the bag when you refund a customer.

There is absolutely no reason to use PayPal at this point and any place that only takes paypal should be boycotted.






I dislike PayPal as much as the next guy, but I don't get this:

> PayPal will also stop letting you refund the percent they take out so you will be holding the bag when you refund a customer.

When I refund a customer, I wouldn't expect the power company to refund the electricity spent serving that customer, and I wouldn't expect UPS/FedEx to refund the delivery of that customer's package. Why should PayPal refund the costs of the customer's transaction ?


It's common practice within the payment industry. When a refund is issued for a credit card transaction, the interchange fees are (or at least, should be) refunded to the merchant.

This will be particularly true for a large payment processor like PayPal, since they will have a lot of negotiating power when it comes to the transaction/interchange fees they pay.


Also PayPal is not alone in this practice. Many credit card processors when using bundled and fixed fee pricing also don't return transaction fees when you issue a refund. For example Stripe.

A good reason to get interchange plus pricing from your CC processor.




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