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Just incurred an NSF fee from my bank due to PayPal's asinine method of handling transaction reversals, i.e. refunds.  I received payment for an item that was no longer available, so I refunded the transaction, thinking all would be fine. But that wasn't the case.

I didn't have enough money in my PayPal balance to refund the buyer because PayPal took out it's fees, but didn't reverse it's fees until after attempting to refund the buyer the whole amount.  So for a lousy couple of bucks, I got hit with a $30 NSF fee and had to move money into that seldom used account to not incur another NSF fee (PayPal automatically attempts a second withdrawal from your bank account). 

Lesson learned- always have more money in your PayPal balance before attempting a refund, because PayPal expects you to front it's transaction fee funds.
 

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I have not had that experience. It must be new. I've typically sent refunds and only the post-fee amount (my net amount) gets taken out of my checking account. The fees are always on PayPal's side, in their "bank account."

I had the same issue a couple weeks ago and paypal promptly fixed it. Apparently there was a glitch in their systems but honestly you should have a few bucks in any account that you have linked to any kind of ach or write checks. Not saying paypal is right!

DesiVibe said:   I had the same issue a couple weeks ago and paypal promptly fixed it. Apparently there was a glitch in their systems but honestly you should have a few bucks in any account that you have linked to any kind of ach or write checks. Not saying paypal is right!
  Glad to hear that PayPal fixed it for you.  First response to my inquiry I got back from PayPal was "not our fault that your bank charged you with NSF fee" and some other gibberish.  When I wrote back asking why they had to take funds from my bank account in the first place, the reply said "looks like my colleague already addressed your concern, thanks for being a PayPal customer".  What a joke. 

This changed in 2011 I believe when they started charging the seller the $0.30 portion of the fee rather than refunding it to the buyer on a reversal. They're complete crooks.

i usually just refund amt - 0.30 and so far no one has complained

whenever it comes down to any sort of issue of a fee or etc, I find it's better to talk to a person rather than e-mail... gets things resolved quicker and usually more so in your favor otherwise because you can bypass the 'script' CSR's and can actually get to talk to a supervisor if the first level cannot address your concern or has the authority to do so.

I have to say I fail to see the issue in refunds, how can you refund money you do not have

Another reason not to let Paypal anywhere near your checking account.

motsuka said:   i usually just refund amt - 0.30 and so far no one has complained
Must not have dealt with any FWFers yet

/ducks  



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