The Situation

So, you have mailed your package and you think everything is all fine and dandy. Then, you hear from the buyer two weeks later and you now have a problem. The buyer emails you stating that the item wasn't what they wanted or they haven't received the package and you didn't buy delivery confirmation. After some communication back and forth, you decide that you are going to refund the buyer's money. Now you're worried you're going to be out the item, the money paid for the item, and the fees associated with selling the item. The following explains how you can get back the fees that eBay and paypal took when your item was sold.

eBay Fees

To get your final value fee back, you need to file an unpaid item dispute. You can go to the dispute console in my eBay, or there is a link on this page that will send you to the dispute process page: http://pages.ebay.com/help/policies/unpaid-item.html

At the top of the page, it states the circumstances under which an unpaid item dispute can be made. One of the circumstances states "Request a Final Value Fee credit for returned item or uncompleted transaction: If you and the buyer have resolved the dispute (for example, the buyer has returned the item, or you and the buyer have mutually agreed not to complete the transaction)."

If you are refunding because the buyer has returned the item, then obviously the above statement would fit this situation. If you are refunding because the buyer never received the package, then the above situation would also fit. The buyer never received the package, therefore the transaction is uncompleted. If you both mutually agree not to complete the transaction, the buyer will not get an unpaid item strike, leaving them unaffected, and you will get your fees back.

Paypal Fees

In paypal, make sure you hit the refund link and you don't just send a new payment. When you log into paypal, you are brought to the account overview page which shows your recent transactions. For every transaction there is a details link that shows you the specifics of the transaction. Click on the details link for the transaction you want to refund.

On the next page, there is a passage at the very bottom that states "Refund Information: If you need to refund this payment to the sender for any reason, click Refund Payment. The Refund Payment option is only available for 60 days after the payment was sent." Clicking on the refund payment link will bring you to the refund page. When you send the refund, paypal will also refund the fees they took from you and give them back to the buyer.

So, by clicking the refund link instead of just sending a new payment, your buyer will get back the full amount and neither one of you will be paying any fees to paypal.