PayPal has made a major change to its refund policy, specifically to processing fees. There’ll be no refund on order cancellation. Are you planning to make changes the way you accept payments from your customers? Do you need a reliable and low cost credit repair merchant account? Just read this article to know more on all this.
News from PayPal: Credit Repair Merchant Account
As you know, the payments giant PayPal allows customers to buy items/services and receive payments for those having been sold. Also, it lets you send refunds on the items you’ve disputed or lost.
Recently, the company has changed the way it treats refunds. Now, the entire 2.90% + $.30 fee won’t get refunded if there’s an order cancellation/refund. Prior to this change, the $.30 didn’t get refunded, but the 2.90% fee did. So, now, an eBay seller/online retailer making a $1.000 sale and receiving an order cancellation will lose the $29 fee that PayPal charges.
This means larger websites accepting PayPal, such as Walmart.com, etc., who’re involved in special deals with the company, will avoid the effects of the change. As for eBay sellers and other online merchants, they’re likely to witness a rise transaction costs based on the rate of return/cancellation.
Many are already talking about closing their PayPal accounts and going for the new eBay payment system. Last year, eBay reported it was going to start using Adyen, an Amsterdam-based service, instead of PayPal as its default payment system.
What about your own business? What changes are you planning to make so to fight the competition in your field? If you need access to working capital to make plans a reality, or if you need the right payments services, just turn to a reputable alternative online lender and processor like FAM.
First American Merchant, an award-winning processor and BBB-accredited business funding provider, offers exceptional merchant services, including a credit repair merchant account both to low and high risk merchants.
PayPal Vs eBay: New Payment Terms
eBay is changing its User Agreement in the U.S. As the company has reported, these changes are affecting Managed Payments. According to eBay, starting on June 1, 2019, the final value fee cap for Basic and Premium eBay Stores will get higher (from $250 to $350). This doesn’t refer to the final value fee cap for Anchor and Enterprise Stores.
As for PayPal, the company has announced that starting on May 7, 2019, when you issue a partial or full refund to a buyer or refund a donation to a donor, you won’t get the fees originally paid as the seller. The company notes that if the new terms aren’t acceptable for you, you’re free to close your account.
What’s more, the company is also making changes to its money transfer terms to friends/family via PayPal accounts outside the U.S. Particularly, currency conversion spread will become 3.25% over a Base Exchange rate if you’re sending money in a PayPal transaction.
So, just keep your finger on the pulse and find the best payment expert that can help you never fall behind the latest trends and grow your business successfully.