Home › Forums › Buying and Selling › Selling on eBay › PayPal Policy Update in May – Whoa Boy
- This topic has 17 replies, 9 voices, and was last updated 2 years, 5 months ago by
T-Satt.
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04/02/2019 at 7:14 pm #59650
Among changes coming here is the most significant:
“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.”
Update can be seen here:
https://www.paypal.com/us/webapps/mpp/ua/upcoming-policies-full
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04/02/2019 at 9:04 pm #59658
Huh. That’s surprising and annoying. Thanks for the heads up, IP.
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04/02/2019 at 10:51 pm #59661
Thanks a lot for the heads up – that is going to make returns/cancellations all the more painful – we already were losing the .30 cent paypal transaction fee.. but now the entire paypal fee as well? Hmmm.. wonder if Adyen will be different?
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04/03/2019 at 8:49 am #59670
Wow! I can imagine this is going to be more painful for clothing sellers, as well those in the free returns program. This might cause a lot of people to give up on that experiment!
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04/03/2019 at 8:52 am #59671
Huh, Paypal is just giving eBay sellers reason to jump ship and only use eBay’s new payment system.
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04/03/2019 at 9:13 am #59681
Looks that way to me. Etsy payment system is so painless. They just transfer my money into our business checking account. Hoping Ayden is more like the Etsy system.
I would have opted into their Beta Trial when they first announced it, but to do so, they make you opt out of the Global Shipping Program. But as soon as that is not a requirement any longer I am going to opt in before they make it mandatory.
PayPal is set up in our Quicken Accounting program and they never balance. Reconciling PayPal is the biggest pain in the rear. I have to make a blind adjustment to balance every month because they are always getting the monthly statement line items wrong. Only a few dollars but it takes way too long to go through their monthly statement line by line to find multiple small penny like errors.
One thing they do is give you a total on the monthly statement but the actual entries were either included in the previous month or show up in the next months statement. UUgghhh.
mike at MDCGFA
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04/03/2019 at 11:27 am #59693
@Mike: Don’t bring in the transactions from PayPal that way. I never do because it brings in most purchases 3 times (+/- at time of transaction, then – at time of clearing).
I download the PayPal weekly transactions into Excel, make a few adjustments, then run through a processor to get it into QIF format, then you can upload.
Love it.
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04/03/2019 at 11:44 am #59696
PayPal downloads are pretty much useless – I find the data is off like you say, and plus in my situation with FX (currency exchange) it gets MESSY.
As I’m selling 0-10 items a day at the moment, I’m still doing things manually with the daily exchange rates and FX transfers to keep it simple. I convert everything into one currency and then do my numbers.
I also have to have a column for FX gain/loss as I may not pull or convert the money in PayPal to cash in my bank account for days or weeks, again creating a small discrepancy that I have to account for. Also, the posted FX rate, PayPal’s FX rate, and my bank’s FX rate is all slightly different…
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04/03/2019 at 11:59 am #59697
@Inglewood: I may have a decent fix for you in the process that I use.
Under Reports\Activity Download, I use the Transaction Type “Balance Affecting”, and move to CSV.
In my Excel File, I drop in the CSV data, and it has a column for each type (sales, shipping, sales tax, etc.). You could add a FX column to capture that.
In the CSV2QIF converter that I use, I tell it what categories in Quicken that each column represents. Took a while to set up, but now my weekly accounting takes about 15 minutes, and I can reconcile PayPal to the penny.
If you are interested, let me know and I could try and help.
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04/03/2019 at 2:05 pm #59711
@T-Satt – I think your second point brings up something I should look into – some real accounting software like Quicken. I’m familiar with pre-2005 versions, but should look into some modern software for my needs. Spreadsheets are great for a small part-time business, but I rather put the time into building a system within Quicken or another software to automate the process in the future. We’re also exploring other business ideas, and should make things easier on ourselves with the right accounting tools.
The FX I can sort out in the spreadsheet – everything comes in “clean” for C$ (e.g. it shows as “$1.99”) and for other currencies it needs to be run through a formula into another field (e.g. US$ shows up as “$1.99 USD” – requiring the USD to be stripped to get it to a financial/number field but it does allow for it to be automated by a lookup).
I’ll hit you up for some help once I get some software – I’m cheap at the moment just using “Libre Office” but should start paying for something a bit better. It’s a good next step for me to take though as I grow.
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04/04/2019 at 6:48 am #59737
@Inglewood: Just let me know if you have any questions and I can do what I can to help.
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04/03/2019 at 6:28 pm #59717
Well Hello and where the heck were you with this tid bit of info. about 3 years ago! LMAO :-). Thanks. Guess I just never thought of it. I won’t do too much until maybe Ayden gets 100% on board, then that way we can all kiss PayPal goodby [for the most part]. But will still offer as a payment option.
mike at MDCGFA
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This reply was modified 2 years, 5 months ago by
MDC Galleries & Fine Art.
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04/04/2019 at 6:49 am #59738
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This reply was modified 2 years, 5 months ago by
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04/03/2019 at 12:05 pm #59699
Since I only get a sale on Etsy once a week like once or twice a month, I don’t notice when the direct deposit transfers happen. Sometimes it seems within 12 hours of a sale, other times a few days later. Do they only issue 1 direct deposit a week?
I like being able to instantly spend or transfer money out of Paypal after a sale. Having to wait a week for a direct deposit would be really annoying!
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04/03/2019 at 12:11 pm #59701
@Almasty: You can set up Etsy to transfer daily rather than weekly. It is in the settings (not sure where, but I made that switch a long time ago).
PS – You have to have over $25 for them to do the transfer, so $24.99 would just sit there until you had another sale.
PSS – I wasn’t happy with the Etsy change a while back, where Etsy fees are taken out of your balance before you get the transfer. In the past, fees would hit our credit card, and sales were going to the bank account. Now they take out any unpaid fees from your sale first, THEN transfer the balance.
So…they not only get their fees ASAP, they also don’t have to pay for the credit card fees to get their fees. Stealthy…but I have to respect it from a business perspective.
Plus it screwed up my accounting each time. But don’t worry, I put a spreadsheet together for that… 🙂
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04/03/2019 at 11:30 am #59694
Yeah, not huge, but the philosophy of it bothers me.
Time to look at moving to Adyen. Need to see if GSP is hooked up yet, and how they handle refunds. We didn’t move over last summer because of those two (and more). Plus, I think third party software was and issue as well.
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04/03/2019 at 1:21 pm #59707
Need to wait and see how Adyen ties into GoDaddy Bookkeeping, but I’m all for jumping ship if PayPal continues making things difficult.
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04/03/2019 at 1:33 pm #59710
Yeah, to be honest, I may have to wait. I went back through our issues with not going to Managed Payments list, and still have concerns. I asked Griff for some extra help on timelines…
1) PayPal will not be added to Managed Payments until Summer 2019. So buyers that want to pay by PayPal can’t do it unless they use a credit card directly.
2) Global Shipping Program is not supported with Managed Payments. The site doesn’t have a timeline on when that will be allowed. I asked Griff if he can say when. So if you go to Managed Payments, you can’t use Global Shipping Program.
3) I need to verify with SixBit that they haven’t seen any issue with folks that make the switch.
4) Accounting detail – I want to be able to breakout each cash deposit into Product Sales (what the buyer paid for the item), Shipping Revenue (what the buyer paid for shipping), Sales Tax Collected (what the buyer paid in Sales Tax that I have to remit to the state of Colorado), and Fees (what we paid in eBay fees for the transaction). I need this to be easy to do as well. Right now, my process that I use to download PayPal, manipulate the data, then upload into Quicken does this for me.
5) Refunds – I want to see how these will be processed a little more. I think I know how, but I want some more detail to be sure.
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