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Paypal Changes: Refund Policy – Effective October 11, 2019

Filed Under: Miscellaneous

Paypal is making more changes to their user agreement, specifically their refund policy. I’ll make this short and to the point today.

Changes to the Paypal Refund Policy

  • Effective October 11, 2019: Paypal will no longer refund fees from the original transaction when you refund a customer.
  • This policy will not apply to duplicate, voided, or disputed transactions.
  • There are no fees to process a refund.

Real Life Examples

  • A refund before October 11, 2019: A transaction of $100 would have $3.20 charged in transaction fees. If refunded, the $3.20 would be returned to your business.
  • A refund after October 11, 2019: A transaction of $100 would have $3.20 charged in transaction fees. If refunded, the $3.20 would be kept by Paypal. This means that if you give the customer back $100, the $3.20 would come from your pocket.

Actions to Take

  • You may want to update your craft business refund policies. For example, you could update your policy to state that, “Paypal transaction fees will be subtracted from any refund due” or something similar.

Read the entire Paypal User Agreement here.

Help get the word out about these important changes. Save the image below to Pinterest.

Paypal Changes: Refund Policy - Effective October 11, 2019 - A must read for Silhouette and Cricut small business owners - by cuttingforbusiness.com

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