Paypal has since revoked their policy with regards to handling fees during a refund. Initially, the payment platform announced that they will start to pocket the initial 2.9% commission fee that sellers forfeit on transactions when they are refunding a client in full, as per The Verge.
Reportedly, any security issues or data breaches did not happen within Paypal but this policy that they announced had a lot of business owners scratching their heads.
The policy has been revoked for obvious reasons, apparently but Paypal will reinstate it and will be rolled out by October 11. Putting it simply, if you are a business owner and you refund a client in full, the percentage taken away by Paypal will be charged to you, giving your business a loss.
Reportedly, this policy has been rolled out in April but due to the outage of the business owners, Paypal temporarily put a stop to it. As of late, the platform stated that the policy has been updated and that they set to roll it out citing cost structures as the main reason for the policy change, including being in accordance to other industry practices.
“Earlier this year, Paypal updated its User Agreement to change our refund policy,” a spokesperson from the platform stated. “In line with industry practice and according to our updated policy, we do not charge fees to process refunds, but when a seller refunds a transaction to a buyer, the fees originally paid will not be returned to the seller. The policy change is going into effect beginning October 11, 2019.”
Paypal is reportedly the biggest payment platform online, however, consumers are still irked with the latest change to their policy.