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Paypal Micropayments and Refunds questions

Discussion in 'Business & Tax Advice' started by Scorpion Ghost, May 6, 2015.

  1. Scorpion Ghost

    Scorpion Ghost Senior Member

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    I have 2 questions about Paypal.

    1. How do I go about getting a Paypal Micropayments account?

    2. If I have a Terms of Service on my site that users have to agree to in order to register, and in that TOS it states that "Refunds are only returned as Site Credit," and then a user makes a Paypal refund claim, can I cover my ass by saying to Paypal that the Refund won't be accepted, because our TOS (that the user Agreed To) states so and so?
     
  2. dondada7

    dondada7 Power Member

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    For the first question just email them and theyll change it
     
  3. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Well, my personal Paypal won't be used. I'll have a family member create a brand new one, and then use that as Micropayments account. I've got my reasons for that... However, I wonder, should we go for a Business or a Premier account. I'm thinking Premier, because business is sort of a step up from what I'm starting out to do.

    But then I wonder, can anyone get a micropayments account, or do you already need to be having some sort of income on that Paypal account for Paypal to grant your request to switch to a micropayment account?
     
  4. Scorpion Ghost

    Scorpion Ghost Senior Member

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    So often I see "Paypal experts" threads popping up on BHW. The type of "Ask us anything about Paypal" threads.

    Where are you guys?
     
  5. dondada7

    dondada7 Power Member

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    I highly doubt that you will need some sort of income before switching. Just explain that you will be receiving small payments for whatever you are doing in the near future and it would be better to switch to micropayments.
     
    • Thanks Thanks x 1
  6. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Okay. Sounds good. Thanks.

    I'd still like a few more opinions though?
     
  7. Scorpion Ghost

    Scorpion Ghost Senior Member

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    One more Paypal-related question.

    Can my site's Terms of Service protect me from Refunds?

    For example, take Fiverr, or other sites like Fiverr. When an order is cancelled the buyer gets his money back in his account as site balance, and that's cool. But what happens if the buyer then goes to Paypal and makes a refund request?

    If Fiverr states in their TOS that buyers who cancel their order will get their money back as site credit, will that cover them on that front? So that Paypal doesn't take their money and give it back to the buyer?

    Because you have to consider, even if we say that the buyer can simply "withdraw" his money from Fiverr, the buyer will still lose some on Withdrawal fees...
     
  8. Repulsor

    Repulsor Power Member

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    Well, you are thinking wrong.

    This is how it works. In Fiverr, the dispute/refund request doesnt orgin from Clients' paypal. The client makes a refund request in Fiverr, and fiverr allows the user to either get an actual refund or'inhouse credits'.

    To make a similar setup, you dont need a TOS, but you can just provide them an option to initiate a refund request from your site, and you can then provide them with both the options.

    Or if you were thinking to fight the chargeback/dispute in Paypal by showing the TOS, I dont think Paypal would care at all. Not sure though.
     
  9. Scorpion Ghost

    Scorpion Ghost Senior Member

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    Are you sure about that?

    https://twitter.com/KustmKontrllerz/status/593615263456628736

    "As stated in our Terms of Service, the money will be refunded to your account as Fiverr credit"
     
  10. Scorpion Ghost

    Scorpion Ghost Senior Member

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    And also, while true that buyers make their refund request through Fiverr, what's to stop someone from going to Paypal and requesting a refund? Nothing really.

    In that case, I assume Fiverr can either send the money back, or refuse, in which case I'd think the TOS comes into play where you can tell Paypal - "The user confirmed that he had read our TOS and Agreed to it, and as is stated in our TOS, no money refund."
     
  11. Repulsor

    Repulsor Power Member

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    I was taking Fiverr as an example. I was speaking in general about money refunds and inhouse credits.

    Nothing is stoping them from going to Paypal directly. But they dont have to, when the site is already having a descent setup and does it well. Different people though, some may go to paypal straight.
     
  12. Scorpion Ghost

    Scorpion Ghost Senior Member

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    All right, but let's assume someone does.

    Say they don't want their money as site credit, but they want it back in their Paypal. So they go to Paypal and request a refund. In this case, would a TOS that states that refunds can only be given in site credit cover me in the dispute on Paypal from having to give the refund to that customer?

    Assuming that upon registration the customer was shown the TOS and asked to tick the box that he has read and reviewed the Terms of service...