Friday, June 21st, 2019
For some time now, PayPal has been consumers’ top pick when it comes to safely processing their transactions. It has also been the go-to payment platform for many small vendors ever since it was popularized on sites like eBay.
But a recent decision has left sellers less than pleased – angry even. Why? PayPal recently announced that it will start keeping sales fees when making refunds.
In the announcement, PayPal explained that some amendments would be made to their user agreement. From May 7 on, the company said it will no longer refund seller’s fees when a buyer asks for their money back. Currently, when someone sells goods or services, they are charged a flat transaction fee plus a percentage-based commission on the sale.
In the event that a customer asks for a refund, everything except the small transaction is returned. Now, PayPal is going to change that. PayPal will keep seller’s fees. This change does not affect buyers, who will still be able to purchase goods and request funds like they did before. The big hit will be felt by those using the platform to sell things.
Those that sell goods on PayPal pay 2.9 percent commission on the sale; this amount will no longer be returned when giving a full or partial refund. The flat fee, on the other hand, is set at $0.30. It has never been subject to refunds. If a vendor sells an item for $1,000 and the customer decides to return it, the seller will lose the buyer and $29 in the process.
In addition to the refund changes, PayPal has also said that it will be altering how it handles international payments and currency conversions. Transferring money to another country will no longer have a flat fee. Instead, PayPal is introducing a variable fee of 5 percent, with a minimum and maximum cost of $0.99 and $4.99, respectively.
And PayPal’s reaction to the outrage over its new policies? The company has simply stated that anyone who disagrees with any of these new terms is free to close their account.
How Businesses Should Handle New PayPal Policy
Staying up-to-date with the latest payment processing services is key to keeping customers happy. Thanks to ever-changing technology, the way consumers prefer to pay continues to evolve. The latest policy changes by PayPal is no exception.
The best way for businesses to handle PayPal’s latest decision is to make sure they offer multiple payment processing solutions to their customers. Of course, this means partnering with a payment processing provider that specializes in their business type and industry. With the right provider, your business can offer multiple payment options, keep customers’ information safe, stay on top of the latest technology and remain competitive.
The experts at Best Payment Providers have compiled a list of the best payment processing providers, along with reviews. You will also find the latest updates and information on topics like PayPal transparent redirect to help you make the most informed decisions. Make sure your business has the tools it needs to safely process transactions, keep your customers satisfied and win their loyalty.