Paypal tip of the day

If you ever have occasion to send money back to someone who has recently sent you a Paypal payment (most commonly, to send a refund), read this!

Paypal takes a cut from nearly all money transfers, running approximately between 3 and 4%. If you initiate a new transfer to return a payment, you will get hit with that percentage coming and going. Ouch.

If you initiate your transfer as a refund, however, you will not only pay no percentage, but you will receive a refund of the percentage of the portion of the original transfer being reversed. How is it done? When you log in to Paypal and look up the original transfer, click on the Details link; on the next screen, scroll to the bottom and click on the Refund Payment link. The next screen will allow you to reverse that original payment in whole or in part. You have 60 days after a transfer to initiate such a reversal.

Posted by David on October 18, 2006 8:59 AM