Do refunds affect my PayPal Account ?

Dominor001

Power Member
Joined
Dec 22, 2015
Messages
518
Reaction score
298
Hey I was wondering if issuing a refund without a paypal dispute from my PayPal account is bad for my paypal account ?
 
Hey I was wondering if issuing a refund without a paypal dispute from my PayPal account is bad for my paypal account ?

Not at all, if anything it's better to do it that way.

My Mrs processed a refund over the weekend for one of our businesses, a customer order a product and must have duplicated paying, so she's paid twice.
We emailed back before we dispatched the order to see if she actually wanted 2 of the same posting out.

Customer said she'd only meant to order one, so we refunded and posted out the single item.
 
You can refund as many times as you want. Keep in mind if you're account is not verified it could raise red flags.
 
You can refund but you need to becareful on your refund rate.
If you reach 15-20% of refund rate, any processor will go to you asking why and it makes sense.
It can mean that the merchant provides a poor quality service/product, a shady service or hidden service. Processors will have a risk exposure to receive chargebacks and/or complains from Visa/Mastercard.
As they want to avoid issues, they will dig into your business.

So you can refund, but do not abuse :-)
 
Only if they are not way too many!

Lets say 3-4% is a good refund rate! Over that might trigger PayPal to a manual review!
 
The disputes definitely have negative effects. If it happens once in a while it's okay but after certain percentage PP will deem you risky, assume you're engaged in shady stuff or whatever and eventually ban you or ask for verification (and then ban anyways after collecting as many details about your identity as they could).

As for the refunds without disputes, I would say PayPal doesn't like suspicious activities and this looks strange as hell even to me. Reconsider your business model lol.

In my experience weird/unusual behaiviour is usually what really gets you banned in PayPal (well unless you do something that's not in line with their terms).
 
As for the refunds without disputes, I would say PayPal doesn't like suspicious activities and this looks strange as hell even to me. Reconsider your business model lol.

You are wrong about this one. PayPal encourages you to communicate with the customer first (by email, phone, whatever), and open a dispute (escalate it to the claim) just as a second step. The same is true from the perspective of the customer (they are encouraged to communicate with the seller first).

I've issued more than 500 refunds while selling with PayPal (8+ years now). Most of them without a dispute being opened by a customer. Never had a single problem with my account...
 
Back
Top