PayPal Temporarily Suspends Seller Fees on Refunds
Last year PayPal made a change in the way it processes refunds on the seller side. If you refund a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees you originally paid as the seller will not be returned to you. That means that PayPal keeps about $30, if you sell an item for $1,000 and later refund it. But now the company is temporarily halting that practice during the coronavirus outbreak. Here’s the email they sent out this morning.
At PayPal we are here to support you and we know that the spread of COVID-19 and its impact on the global economy has serious implications for your business. We have seen that you have been particularly impacted by recent customer behavior and so we would like to offer a temporary refund policy on your account. This means that from today until April 30th, PayPal will not withhold any of the transaction fees when we process a refund on your behalf.
Hopefully this helps some sellers during these tough times.