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Re:Can I reject a Paypal payment if out of stock

    Oct 22 2010 04:01:30



    Join date : 2009-04-25      Posts : 18

    Gerald is correct regarding the refund in that Paypal will refund the variable (percentage) part of their fee, but they will not refund the fixed "per transaction" part of their fee (which is usually 30 cents for US merchants, it is no doubt different for other countries). This is a relatively new development, Paypal made this policy change in August I believe.

    For example, if someone pays via Paypal and their order total was $100, the Paypal fees might be 2.9% plus $0.30 for a total of $3.20. If you refund the payment, Paypal will only refund $2.90 of their total fee.

    The bottom line is that if you do a refund via Paypal, you will not be reimbursed for whatever the fixed, "per transaction" part of Paypal's fee was. In the USA, this is $0.30. This isn't much worse than what you'd be charged by most credit card processors if you refund a transaction after having processed it, but I just wanted to bring it up so that you are aware of it.

    Paypal used to refund the entire fee, but this is no longer the case.