For many vendors, either small or large scale, PayPal has been a go-to payment platform since it was used frequently and became popular on eBay and other online stores or market places. Previously in PayPal, if a person sells goods or services, they are charged a flat fee, plus a percentage based commission on the sales.
Later if a customer asked for a refund, everything except that small transactional fee was returned. But according to PayPal new refund policy, they will keep the seller’s fee which causes anger in users.
All this change won’t have any effect on buyers, they can still buy stuff and can request refunds as they always have. However, this has a huge impact on sellers selling stuff through PayPal.
Anyone who sells through PayPal has to pay 2.9% commission on the total amount of sale which will no longer be returned to them when giving half or full refund to customers. On the other hand, the flat fee is set at $0.30 which has never been subject to refunds. People are always angry about the changes and have been quick to point it out.
For example, now through PayPal new refund policy if a seller sells something for $2000, but later customer changes the mind, then the seller not only lost the customer but the $58 in the process as well.
Not only PayPal changed refund policy, but they also have changed the terms of how they handle currency conversions and international payments. Transferring money through PayPal to another country now will not have a flat fee, the company is introducing a variable fee of 5% instead with a minimum and maximum cost of $0.99 and $4.99, respectively.
The Company has clearly said that anyone who disagrees with the PayPal new refund policy is free to close their account.
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