PayPal will keep the fees it originally charged sellers for the purchase.

PayPal Holdings Inc. is changing its seller refund reimbursement policy.

When a seller issues a partial or full refund to a buyer via PayPal, the fees paid by the seller to PayPal will no longer be returned to the seller: “We’re changing how we treat refunds. If you refund (partially or fully) a transaction to a buyer or a donation to a donor, there are no fees to make the refund, but the fees you originally paid as the seller will not be returned to you,” the amended PayPal policy says.

What this means is PayPal will keep the fees it originally charged the seller for the purchase, which ends up costing sellers—sometimes big bucks depending on the item purchased–when the buyer decides he wants a refund within the parameters of the seller’s refund policy. Before, PayPal kept the fixed 30-cent transaction fee when a refund is issued but still gave back to the sellers the rest of the refund fee.

This change goes into effect May 7, 2019.


PayPal in November 2018 also increased Venmo fees as part of a broader push to make money from the fast-growing mobile payment service. PayPal said it will charge 1% when Venmo account holders transfer money quickly to their bank accounts. That’s a change from the 25-cent fee before. Users will still be able to do standard bank transfers for free but those take one to three days, rather than roughly 30 minutes for the other method.


Nearly 72% of retailers in the forthcoming 2019 Top 1000 accept PayPal.