PayPal will not refund seller fees starting 7 May
PayPal's ancient payment transaction systems from two decades ago are becoming a burden due to increased operating costs. In their newest price hike, seller fees will no longer be refunded when a buyer asks for their money back, reports TechSpot.
Anyone selling goods via PayPal pays 2.9% commission on the sale, which will no longer be returned when giving a full or partial refund. The flat fee is set at $0.30, and has never been subject to refunds.
The 2.9% commission may sound like a small cut from a sale, but larger transactions and companies with more than $10, 000 worth of sales are paying a commission equivalent to $290 for a payment service. I would like to post the question to PayPal: "What exactly do you do with the 2.9%?" It is probably much cheaper if I took a plane and paid the seller in cash.
For international payments, instead of paying a flat fee, a 5% variable fee has been introduced for PayPal, ranging from $0.99 to $4.99.
BusinessNewsDaily has posted up some alternative payment sites for PayPal including:
Skrill: A Paysafe company for secured transactions, although premiums paid for additional security may not be as valuable
Stripe: online credit card processor that also charges a 2.9% fee
Square: A mobile credit card processor that has been quite successful for small businesses
Venmo: Peer-to-peer payments with a minor transaction fee
Payment systems that involve cryptocurrencies are seen as the next break-through for more affordable transactions. Using a coin wallet will incur conversion fees charged by crypto exchanges as well as an often negligible gas price charged by mining pools.
We do hope that future crypto exchanges provide competitive fees that are lower than current payment systems. High transaction fees should be surmountable as the cryptocurrency market continues to mature.