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Payment provider that does not keep transaction fees on refunds

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  • Payment provider that does not keep transaction fees on refunds

    Recently (past year) payment processors have started to keep all the transaction fees when a payment refund happens. By this I mean Stripe and now Paypal keep the transaction fees (i.e 2.9% + .30 cents). We were not affected by this as Paypal would refund us everything except the .30 cents when a refund happened. We just received an email from Paypal that effective 11/2/20 they will now keep the 2.9% plus .30 cents on any refund.

    Paypal states this is standard industry practice. This is not correct as the big boys do not have transaction fees kept on refunds.

    So my question is this it looks like Sqaure does not keep the transaction fees on a refund???

    We do not have many order cancellations/refunds; however, getting a little tired of the games some companies play.

    Also any other payment processors out there that do not keep these transaction fees on a refund.

    Thanks!

  • #2
    Thanks for this information. Stripe's fess are too high but we use it because it us the only gateway integration 3dCart has built out for Google Pay and Apple Pay. It is disappointing, after all this time, neither Authorize.net or Elavon/Converge have been integrated with these wallets. Using them, you can easily find a credit card processor with lower fees as well as not keeping the transaction fees (e.g., Costco). This information about the fees is concerning. Years ago, we left Cardservice International because of this same policy. Also, we just noticed that at least one of these wallets, if not both, allow the customer to bypass the account requirement in order to checkout causing the built in stats to under count the number of unique customers. It appears to be related to the Stripe integration. We may decide to turn off these wallets.
    Luxlife

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    • #3
      PayPal started keeping the fees on us many months ago on refunds. You were lucky they are just doing it to you now. Not that either scenario is good.
      http://www.pack-secure.com

      Packaging and Shipping Supply Specialists

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      • #4
        Does anyone then deduct from a customer these transaction fees if the customer simply decides to cancel an order? We have it posted on our website under cancellations or refunds.

        We ship orders very quickly - typically within 24 hours. It's those customers who buy and then 5 mins. after they buy then decide to cancel their order. Doesn't happen a lot but it does happen. And not concerned about losing a customer as these are the folks who are not regulars and tend to not come back.

        We do not use authorize and capture as that seems like just another step where something could go wrong.

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        • #5
          We consider it a cost of doing business and do not pass it on to the customer.
          http://www.pack-secure.com

          Packaging and Shipping Supply Specialists

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          • #6
            We authorize at checkout then collect the payment later. It has been a long time since we've checked but our understanding is card processors do not treat a canceled authorization the same as a refund so there would not be a fee charged. We also charge restocking fees.
            Last edited by Luxlife; 10-27-2020, 08:14 PM.
            Luxlife

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