As of October 11th 2019, PayPal has implemented a Major Policy Change in the way refunds are now handled globally for all PayPal accounts. As per PayPal's "Policy Updates" page:
"We’re changing how we treat refunds. If you refund (partially or fully) 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."
WHAT DOES THIS MEAN FOR SBB & SBB CUSTOMERS?
Basically it means that any PayPal account which processes a refund to their customer will no longer get the 2.9% processing fee returned to them, and PayPal will keep those funds. Yes, you read that right -- PayPal has decided that they can simply keep 2.9% of the overall transaction value, even if a full refund has been given back to the customer.
This applies to Merchants like SBB which are accepting PayPal payments directly on the website, as well as eBay Sellers like yourselves when PayPal was used as the method of payment.
WHAT CHANGES WILL HAPPEN AT SBB NOW BECAUSE OF THIS?
The profit margins in the card business are razor thin, as many of you guys already know. So effective immediately, if a Refund Request is submitted by one of our customers -- and PayPal was used as the payment method, we can handle the request in 1 of 2 ways:
1. Issue back 100% of the payment value in SBB Store Credit.
2. Issue back a 97.1% refund back to the PayPal account which was used to make payment.
WHY IS SBB PENALIZING THEIR CUSTOMERS BECAUSE OF THIS CHANGE?
We most certainly are not penalizing our customers. If PayPal is keeping 2.9% of funds received, EVEN if the transaction has been refunded -- then SBB (and anyone who accepts PayPal) will only have 97.1% of the original funds in their posession to be able to be refunded back.
It's certainly not fair to expect the merchant to take a hit because you've changed your mind, or can't wait for a break to fill. We'll gladly provide a 100% refund via SBB Store Credit, which can be used just like cash directly on the website.
WHAT CAN I DO TO NOT HAVE TO DEAL WITH THIS?
You can use Credit Card payments instead of PayPal on our website when purchasing your breaks. We've accepted All Major Credit cards since Day 1 of operation, and that payment method is not affected by PayPal's policy changes since those transactions are handled by Stripe (not PayPal).
Any questions, please do let us know.... and as always, thank you for being part of the SBB Community!