How PayPal’s New Refund Policy Is Killing Small Businesses


It used to be the case that if you made a sale and your customer decided they wanted a refund, PayPal would refund everything, including the 3% sales fee it charges vendors. When May 7th, 2019 rolls around, that will no longer be true.

That’s because PayPal has revised their user agreement to lay permanent claim to the 3% sales fee, regardless of whether you refund the buyer or not. What makes the policy change so shocking is that if your customer asks for a refund, you’ll lose not only the client but also 3% of the sales amount paid to PayPal.

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