Paypal refunds attract a fee.

As an honest person, you refund the money you received in your paypal due to some reason. Paypal obliges but slaps a penalty for your honesty. :)

Doesn't make any sense? Read below the official announcement from Paypal.

"Amendment to the PayPal User Agreement

Refund Fee. Section 8.5 (Additional Fees) is amended to add a new refund fee. If you refund a Purchase Payment, we will retain the Fixed Fee portion of the Purchase Payment Fee. The buyer’s Account will be credited with the full Purchase Payment amount and the Fixed Fee portion of the Purchase Payment Fee will be deducted from your Account in addition to the amount of the refunded payment. The Fixed Fee will depend on the currency of the Purchase Payment and is listed in 8.4(c).

Fees: The following fee for Refunds will be added:

After August 10, 2010, the Fixed Fee portion of the Transaction Fee will be deducted from your Account at the time of the refund, in addition to full payment amount that is refunded to the buyer. Fixed fee portion of the original Transaction Fee.

(The Fixed Fee will depend on the currency of the payment, so if the payment was made in USD then the refund fee is $0.30.)

* Excludes Direct Payments and Virtual Terminal Payments where an American Express Card is used."

What comes to your mind? I think Paypal employees have just asked for a raise.

All said and done, I view this rule as a reasonable one. When requesting to refund, you are giving more work to Paypal which could have been avoided by you and I as a seller-right?

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