Refunds

MichaelCeeMichaelCee Hosting ProviderOGServices Provider

When a customer requests a refund (all above aboard and as per your terms and money back guarantee) do you give them a full refund or do you keep the transaction fee? E.g PayPal keeps 30p from every refund.

Refund amount
  1. What do you do?35 votes
    1. Full amount plus fee
      60.00%
    2. Full amount minus fee
      40.00%

Comments

  • bikegremlinbikegremlin ModeratorOGContent Writer

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  • crunchbitscrunchbits Hosting Provider

    @MichaelCee said:
    When a customer requests a refund (all above aboard and as per your terms and money back guarantee) do you give them a full refund or do you keep the transaction fee? E.g PayPal keeps 30p from every refund.

    If the refund is within a timeline that the merchant accepts it, the fee is refunded to us so we also refund that to the customer. Recently, a decision by me meant we had customers who were given a special reprieve from our refund timelines/policies because of a special situation and many of those transactions are way outside of the window to refund the fee. We just ate it in this case (as well as the currency conversion fees on the way back out) to send the customer the entire remaining balance owed.

    I think it's kind of a case-by-case deal, and in the case above we (Crunchbits) were the instigators of the event so we should be eating it and not piling it on customers. I think if it's not already outlined in your TOS, I'd likely outline it if there are processing fees that you don't want to refund/eat and I do think it's fair unless there was some major misgivings that were your (as the provider's) fault.

  • MichaelCeeMichaelCee Hosting ProviderOGServices Provider

    @crunchbits said:

    @MichaelCee said:
    When a customer requests a refund (all above aboard and as per your terms and money back guarantee) do you give them a full refund or do you keep the transaction fee? E.g PayPal keeps 30p from every refund.

    If the refund is within a timeline that the merchant accepts it, the fee is refunded to us so we also refund that to the customer. Recently, a decision by me meant we had customers who were given a special reprieve from our refund timelines/policies because of a special situation and many of those transactions are way outside of the window to refund the fee. We just ate it in this case (as well as the currency conversion fees on the way back out) to send the customer the entire remaining balance owed.

    I think it's kind of a case-by-case deal, and in the case above we (Crunchbits) were the instigators of the event so we should be eating it and not piling it on customers. I think if it's not already outlined in your TOS, I'd likely outline it if there are processing fees that you don't want to refund/eat and I do think it's fair unless there was some major misgivings that were your (as the provider's) fault.

    Generally speaking I am eating the fee but for things like subscriptions that weren't cancelled by the customer, I think it would be fair to keep it.

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  • AuroraZeroAuroraZero ModeratorHosting Provider

    The problem you may run into is the payment processor may require a full refund even any fees incurred by the user. If that happens and they dispute it the processor may come back on you for it.

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  • MichaelCeeMichaelCee Hosting ProviderOGServices Provider

    @AuroraZero said:
    The problem you may run into is the payment processor may require a full refund even any fees incurred by the user. If that happens and they dispute it the processor may come back on you for it.

    True but then again I think most people who communicate with you to ask for a refund instead of just charging back are usually good eggs who you can reason with

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  • AuroraZeroAuroraZero ModeratorHosting Provider

    @MichaelCee said:

    @AuroraZero said:
    The problem you may run into is the payment processor may require a full refund even any fees incurred by the user. If that happens and they dispute it the processor may come back on you for it.

    True but then again I think most people who communicate with you to ask for a refund instead of just charging back are usually good eggs who you can reason with

    I agree just something too keep an eye on is all I am saying

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  • If it's your fault, full refund.

    Is it customer fault? Partial refund.

    Is no one fault? Full refund.

  • ZizzyDizzyMCZizzyDizzyMC Hosting Provider

    @imok said:
    If it's your fault, full refund.

    Is it customer fault? Partial refund.

    Is no one fault? Full refund.

    Yep basically this. Eating a 30-50 cent fee is better than it being mentioned in the soon-to-be 1 star rating on Trustpilot.

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  • I think find a good processor. Check who gives you a good deal. Paypal has always been convenient, that is. Not the best.

    I like Stripe as in past they did not charge me fees for refunds within a month I believe.

  • MichaelCeeMichaelCee Hosting ProviderOGServices Provider

    @huntercop said:
    I think find a good processor. Check who gives you a good deal. Paypal has always been convenient, that is. Not the best.

    I like Stripe as in past they did not charge me fees for refunds within a month I believe.

    Unfortunately they do not or no longer do this. "Stripe's processing fees from the original transaction won't be returned."

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  • edited November 30

    @MichaelCee said:

    @huntercop said:
    I think find a good processor. Check who gives you a good deal. Paypal has always been convenient, that is. Not the best.

    I like Stripe as in past they did not charge me fees for refunds within a month I believe.

    Unfortunately they do not or no longer do this. "Stripe's processing fees from the original transaction won't be returned."

    OMG you are right. Everyone has changed their policies. I just logged into my account and I was shocked. I am also updating my 100% refund policies to be > 7 days; 75% after because my small store sells "tours" and they are not cheap.

    To answer your question differently, I am not hedging my risk over time in my scenario given tourism business.

    So much for leaving stuff safely on autopilot.

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  • @MichaelCee said: E.g PayPal keeps 30p from every refund.

    The average customer won't know what your agreement with PayPal (or any payment processor says), so it will be a surprise to them.

    The other thing to keep in mind is that these refunds could also be covered by distance selling regulations in which case those regulations will say how much you need to refund.

    Only if you are definitely outside of any regulations and do a partial refund anyway, you might take the refund fee into account when calculation how much to refund (but still don't point out the fee separately).

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  • AuroraZeroAuroraZero ModeratorHosting Provider

    @MichaelCee hey man I am trying to give you monies answer!!!

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  • In the UK our distance selling regulations say a full refund should be given if within 14 days (I believe). I can't see how this could be applied on international transactions etc and I certainly would hope a friendly dialogue would resolve any issue.

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  • @AuroraZero said:
    @MichaelCee hey man I am trying to give you monies answer!!!

    He's sleeping. No need for monies.

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