Change to Paypal refunds process may leave sellers out of pocket

Earlier this month Paypal introduced changes to its refunds policy that will see it retain all fees from refunded transactions.

In what could potentially be a sting to businesses utilising the service, the terms would see Paypal retain all of the fees the seller originally paid. The action came in to force On March 5th, according to a report from e-Commerce specialist site Tamebay.

Most businesses will therefore see fees of 2.7% of the transaction value, plus the fixed fee.

Shops therefore would be well advised to analyse their return rates and consider factoring in such a dent in net profit to the sale.

Paypal has around 305 million active accounts and the firm has generally kept ahead of the e-Commerce trend, enabling retailers to provide a friction free checkout process.