Paypal refund - fee now only partly refunded

[Nemo]

I just took a booking where the guest paid by Paypal. When I give the options of how to pay, I include Paypal, but quote the fee that it will cost if they wish to pay that way.

Anyway, they paid by Paypal but did not include the fee, so I did not receive the full amount. When I pointed out the mistake, we agreed that I would issue a refund and then he would pay again, by whatever method he wished, but to include the fee if he chooses to pay again by Paypal.

I was surprised to find that the whole fee wasn't refunded and that 20p has been deducted from the fee refund. This had never happened to me before, so I went looking and found this on the Paypal website.

Refunds:

If you issue a refund within 60 days of receiving a payment by using the 'Issue Refund' link we'll reimburse you the variable part of the fee you were charged, but we'll keep the fixed part of the fee.

So this is a new one on me and something to be aware of if you weren't already. A small sum, but it's the principle involved and it has to now be included in my accounts, which will make for some fun bookkeeping!

[e-richard]

Thanks Nemo, I did not know that.

But it won't bother my bookkeeping as I simply keep all amounts to the nearest whole £ only. For simple tax accounting, all credits are truncated down, and all debits are rounded up

[Essar]

PayPal have always refunded the % part of the fee and kept the fixed part of the fee, this is not new. They only charge 20p for the transaction as the fixed fee and this is the bit they keep - it's not a bad charge for the processing they have to implement.

[Nemo]

PayPal have always refunded the % part of the fee and kept the fixed part of the fee, this is not new. They only charge 20p for the transaction as the fixed fee and this is the bit they keep - it's not a bad charge for the processing they have to implement.

Not for me Essar. This is definitely a first. I have always had a full refund of the fees. Now they did ask me to verify my account the other week and I had to provide more information about my business. Even though nothing appeared to change this is clearly it; my account status has been changed in some way, so that this rule now applies to my account where it didn't before.

I wouldn't mind if it was my fault, but when it is the guest that has not followed really clear instructions, it's a little frustrating!

Richard, I haven't quite got a system in place for bank charges etc as I so rarely have them, but I'll have to work something out. I need to get my head around how to enter it in PIMS though!

[Hells Bells]

I'm sure they have always kept the 20p fixed part of the fee too.

[roxytoo]

Always full refund for me too

[Nemo]

The reason I know this is because I rarely keep a balance in my account. I had had a refund for something else and then after the refund noticed that I was 20p down.

Whenever I previously issued a refund it simply took my balance back down to zero.

It has to be something to do with different types of accounts, how much money is being processed etc.

[pandaburgh]

Hi Nemo,

Have you recently linked your Paypal account to Holiday Lettings? I've always had a full refund before, but I noticed when I linked my account that they mentioned the charge was 1.4% +20p per transaction. Previously, I think I was charged a straightforward 3.4%.

[Hells Bells]

A long time ago on a particularly fruitful month of bookings, balance payments etc etc I applied for merchant rates and was accepted. I only received them very occasionally (until I linked my account with HL) , so perhaps that is why the 20p thing happens. It never leaves my account with a negative balance though.

[Nemo]

No I haven't linked to HL. The fee I'm charged has always been 3.4% plus 20p fixed fee, but this is the first time they haven't refunded the 20p on issuing a refund.

I would like a cheaper rate, as more people are choosing the Paypal option and as I pass the fee on, it would be nice if it was lower. However, I'm unlikely to get a large enough amount go through my account within one month to qualify for the slightly lower merchant rate.

I don't think I can bear to go the HL route though after everything said here!