Paypal-refund-fee-reddit -
When you refund a buyer, you must provide the full amount they paid, but PayPal keeps the original processing fee (typically ~2.9% + $0.30).
A common tip shared on Reddit to avoid these fees is to use "Authorization and Capture" settings, which allows you to verify an order before officially "capturing" the payment and triggering the fee. PayPal Refund Policy Overview How do I issue a refund? - PayPal paypal-refund-fee-reddit
Many users describe this as a predatory practice because sellers can lose significant amounts on high-value items just because a buyer changed their mind. When you refund a buyer, you must provide