- Joined
- Jan 7, 2009
- Messages
- 9,725
HI all,
I'm looking for ideas and opinions on how to live with the new world PayPal has created processing credit cards.
When a merchant takes a charge, ( approx) 3% PayPal commission ( also called a processing fee) is withheld.
Used to be, in the case of a refund, PayPal returned the 3%.
Been that way forever.
Now, as of a few weeks ago, PayPal decided that it's keeping that 3% regardless of return.
In fact, they will keep it even if a consumer presses "buy it now" by accident and immediately cancels the sale.
I should also note that other processing companies have always kept the commission in the event of a refund.
PayPal was special in that regard.
Which is how they pretty much cornered the market for processing small business credit card purchases.
Now that they have cornered the market, they put the hammer down on the same people who got them where they are.
Do you feel small companies should charge re-stock fees to cover the liability?
It seems like the only other answer is to raise all prices to cover the issues that small percentage sales create....
But 3% is a lot for sellers of diamonds and jewelry to loose.....
Any and all suggestions welcome!!
I'm looking for ideas and opinions on how to live with the new world PayPal has created processing credit cards.
When a merchant takes a charge, ( approx) 3% PayPal commission ( also called a processing fee) is withheld.
Used to be, in the case of a refund, PayPal returned the 3%.
Been that way forever.
Now, as of a few weeks ago, PayPal decided that it's keeping that 3% regardless of return.
In fact, they will keep it even if a consumer presses "buy it now" by accident and immediately cancels the sale.
I should also note that other processing companies have always kept the commission in the event of a refund.
PayPal was special in that regard.
Which is how they pretty much cornered the market for processing small business credit card purchases.
Now that they have cornered the market, they put the hammer down on the same people who got them where they are.
Do you feel small companies should charge re-stock fees to cover the liability?
It seems like the only other answer is to raise all prices to cover the issues that small percentage sales create....
But 3% is a lot for sellers of diamonds and jewelry to loose.....
Any and all suggestions welcome!!