Jump to content
  • Checkout
  • Login
  • Get in touch

osCommerce

The e-commerce.

AmEx/PayPal keeping fees even with returns


longhorn1999

Recommended Posts

Hi,

 

I've been using PayPal Pro to process credit cards on my site for a while. Like everyone, I accept payments via AmEx since that card is so prevalent. But PayPal just snuck something by me in one of their recent legal updates that I didn't know about until just getting burned on a return.

 

According to their rep on the phone, starting on 7/1/12, PayPal does not refund the transaction fees on returns for transactions made using an AmEx. I complained of course but PayPal told me that AmEx doesn't refund the fees to them, so that can't refund the fees to merchants.

 

I had a customer place a small order yesterday and then cancel it an hour later. I only lost $10 because of this particular AmEx racket, but potentially this could cost a lot of money since I have some products for sale that are very expensive. I don't have many returns or cancellations, but this new potential liability is troubling.

 

from section 2d of the PayPal Website Payments Pro and Virtual Terminal Agreement (revised October 1, 2012):

 

Refund*

 

For all refunds, except refunds of Direct Payments or Virtual Terminal Payments where the buyer used an American Express Card, the Fixed Fee portion of the Transaction Fee will be deducted from your Account at the time of the refund, in addition to the full payment amount that is refunded to the buyer..

Fixed Fee portion of the original Transaction Fee.

 

(The Fixed Fee will depend on the currency of the payment, so if the payment was made in USD then the refund fee is $0.30.)

For refunds of Direct Payments or Virtual Terminal Payments where the buyer used an American Express Card, the Transaction Fee will be deducted from your Account at the time of the refund, in addition to the full payment amount that is refunded to the buyer. Transaction Fee applied to the original transaction.

 

 

 

 

Am I allowed to put something in my terms and conditions whereby customers who pay with AmEx are deducted 3.5% or whatever percent I decide if they cancel the sale? There's already a restocking fee I charge if the item is shipped and then returned that would take this into account, but I want to be protected in the unlikely case where someone buys and then cancels a $5000 product and AmEx/PayPal tries to stick me with a 5000 X 0.035 = $175 bill.

 

Has anyone else had the same problem with AmEx? Any suggestions?

 

Thanks

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...