A recent PayPal announcement has surfaced of the payment services intention to make several changes in its fees.  This has been met with a lot of complaining and grandstanding, so you’re probably wondering, “What’s going on?”

There are three particularly important changes.  The first one, scheduled to begin in late August, makes the $0.30 USD fixed fee paid per transaction non-refundable.  This fee is the set amount charged when a payment is received, plus a percentage fee on the payment.  If a full refund were given to the customer, PayPal had allowed for all fees to refund to the customer.  No more, says PayPal: if a complete refund is given, that’s okay – but the 30 cent transaction fee will not be refunded.  This is typical of the payments industry, and is not a cause for alarm.  Not only is it just like everybody else in the business, but it doesn’t have anything to do with partial refunds for, say, overcharging a buck on shipping costs.  You give the buyer a buck back, and you aren’t charged anything for those partials.

The other fee that’s raising some hackles is the “Chargeback Fee” which PayPal assesses when an issuing bank or Card Service demands a payment be returned.  Again, this is an industry standard, and PayPal’s fee for a chargeback is going from $10 to $20 USD.  Important for Sellers is that chargebacks are not Buyer Protection cases found for the Buyer, or a seller’s decision to  refund any or all money.  Chargebacks are a special circumstance where PayPal is told “we want our money back” from the issuer.  This can be because of automated loss prevention systems, or the buyer saying the purchase was unauthorized or unknown on his statement, or several other reasons.  Chargebacks are often taken care of by a seller qualifying for PayPal Seller Protection.  Chargebacks can also be appealed in the same way that Buyer Protection complaints are handled: proof of shipment, delivery, and messages and feedback showing buyer receipt and satisfaction – they can’t argue they didn’t get something if a seller can show they did!  But if a chargeback sticks, and the seller isn’t covered by Seller Protection, the money goes back and a fee is levied on PayPal – which means on the Seller, and that charge will go from $10 to $20 USD. 

The third thing of note is a power move by American Express for those using PayPal’s Virtual Terminal or Website Pro-type external services for AMEX credit card payments.  AMEX is changing lanes with its own deal out there in cyberspace, so it wants sellers to make a special agreement with them that dictates their service.  It’s all meant to advantage AMEX and their own payment system as they bring it online.  This is also typical for American Express operation, and is just one of those Big Company things merchants have to deal with.

Bottom line for sellers is this is a fee increase of sorts on absolute refunds.  If a forced refund were to result because of a Buyer Protection claim filed against the seller, the seller would lose the refund.  The 30 cent charge for handling the money in the first place remains with PayPal.  If a bank or card company hits a seller with a chargeback that sticks, and the seller is not covered by Seller Protection, the $10 fee will go up to $20.  Lastly, unless a seller has historically processed a lot of AMEX payments, they may have just taken themselves out of the PayPal game – a dangerous gambit with PayPal’s market penetration.  All in all, this is not only just business as usual, but in line with the fees and how business has operated with payment processing for years.  It is part of the maturing of the internet as regular, experienced business gets integrated into operating on the net. 

I don’t care for rate hikes and changing fees and moving rules, but it’s not so bad when it’s something common to how businesses have worked in the past few years.. and it’s really more of what we should expect in the way that businesses operate today.
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The announced changes can be seen here at this PayPal link.

This month we finally get to look at breaking the summer doldrums and forward to the approaching holiday season. Now is a great time to “polish the apple” – getting yourself and your skills ready for the busiest sales period of the year. Recent eBay announcements mean that selling to the rest of the planet will once again present a strong opportunity, if your merch and mindset are ready for it.

Meeting Itinerary

• Q&A. Bring your questions and get answers while we’re all arriving.
• News update. Learn the newest info.
• Roundtable Discussion. Exchange ideas, brainstorm and support
• Break. Enjoy a quick stretch and a refill
• Presentation. Topical discussion or Guest presenter.

September Presentation

“Crossing Borders: Selling Internationally”

With more than 50% of total eBay sales coming from outside the US, thinking about selling to the rest of the planet makes good sense. But is it a good idea for you? Our speaker will provide an overview of what you need to know to sell outside the US. Special attention will be paid to issues with customers, shipping & Customs obligations, DSR scores, and upcoming eBay changes. Avoid the most common problems and save yourself time, money and aggravation.

Coming Up:

• October Meeting 10/8: PowerSellers and Top-Rated Sellers
• November Meeting 11/12: Seller Strike Team – Sales Attack!
• December Meeting 12/10: Holiday Family Dinner Party in Moore, OK

Asbury UMC [map]
1320 SW 38^th ST
Oklahoma City, OK 73119
Directions: 405.633.3636

The Oklahoma City Metro eBay Sellers Group meets the 2nd Thursday of each month at Asbury United Methodist Church at 7:00PM.  These meetings are free and open to the public, but please RSVP to ensure available seating by calling 405.633.3636 or writing to uj@unclejoeradio.com. 

Asbury UMC [click for map]
1320 SW 38th ST
Oklahoma City, OK 73119
Directions: 405.308.4299

Meeting Itinerary

1. Q&A. Bring your questions and get answers while we’re all arriving.
2. News update. Learn the newest info.
3. Roundtable Discussion. Exchange ideas, brainstorm and support
4. Break. Enjoy a quick stretch and a refill
5. Presentation. Topical discussion or Guest presenter.

August Presentation

“GETTING READY FOR THE ANNOUNCED SR2 EBAY CHANGES”

Got a question about the new eBay changes and how they’ll affect you?
Will you be a Top-Rated Seller? What do you do about that whole insurance thing? We’ll take a an overview of the changes and see what eBay looks like for the rapidly approaching holiday season.

I also have additional Paypal/eBay Security keys for those that need them.

Upcoming Discussion

September: “Selling to the World – Taking your sales across State Lines.”
The Oklahoma City Metro eSellers Group meets the 2nd Thursday of each month at Asbury United Methodist Church at 7:00PM.  These meetings are free and open to the public, but please RSVP to ensure available seating by calling 405.308.4299 or writing to ebay@unkiejoe.com.