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THE TAG BLOG

Managing returns due to refund fee changes by Paypal

NOVEMBER 4 2019

HIGHER FEES COMING FOR ONLINE SELLERS

When PayPal first announced a refund policy change in April 2019, whereby they would not refund online sellers their original transaction fees in the case of a return, forums lit up with outraged sellers. Initially, it seemed that they were reversing this highly unpopular change, but on October 11, 2019, the new PayPal refund policy went into effect. Sellers accepting PayPal are out the 2.9% plus 30-cent fee on their sale even if they issue a full refund to the customer.

PayPal sent out the following refund fee policy update:

'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.'

For example, the sale of a $1,000 dress would cost the seller $29.30 in PayPal fees. In the case of a full refund to the buyer prior to October 11, the seller received back $29.00; a return today would result in zero dollars returned to the seller. Reselling the same dress would incur fees a second time, cutting into already slim margins.

RETURN FRAUD EXPOSES SELLERS TO UNRECOVERABLE PAYPAL REFUND FEES

Return fraud tag prevent counterfeit product switches wardrobing 360 ID Tag

Preventing items sold online from going out for a night on the town and being returned. Shown here is the Classic Loop Pack - 22mm.

Sellers bear the cost of payment processing fees multiple times for the same item

On forums, sellers are debating the need to reassess their return policies as this unexpected fee hike just made accepting returns more expensive. Unfortunately, there will always be instances of buyers returning items for various reasons. However, what if the mere presence of a 360 ID Tag had the effect of deterring a dishonest buyer from engaging in brazen acts of return fraud like wear and return, wardrobing, or counterfeit product switches?

Current 360 ID Tag users are reporting lower rates of returns overall, and as a bonus, they have successfully identified customers who are serial returners. For those businesses accepting PayPal, this is a welcomed benefit and helps them manage fraudulent returns.

THE SOLUTION IS AN ANTI-RETURN FRAUD TAG

Typically costing less than 50-cents per item, the 360 ID Tag solution is well worth the investment, protecting you from unscrupulous buyers and unreasonable merchant return fees due to e-commerce return fraud.

Return fraud tag prevent counterfeit product switches, wear and return, wardrobing 360 ID Tag

Ship your item with a 360 ID Tag attached. Customers can still try the item on with the return tag attached.

Let us know in the comments below how this PayPal refund policy change has impacted your business

Want to talk return tags, have questions, or need some advice? Add a comment below, or send me a message at info@360idtag.com, and I’ll be happy to help you out.

CHELSEA DUHS - FOUNDER 360 ID TAG

Find the right 360 ID Tag pack for your business

We offer a variety of 360 ID Tag packs, with different combinations of return tag material and tamper-evident security seals. You can also create a custom combination to fit your specific needs. Browse our 360 ID Tag products and select the return fraud solution that best suits the types of products you sell online.

E-commerce return security tag on skirt. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on skirt. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on sweater. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
360 ID Tag Design Benefits unique serial number tamper evident security seals 22mm
E-commerce return security tag tamper evident seal void on dress to prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. 360 ID Tag.
Return Fraud Tag Kit for General Apparel – 48 Seals

Return Fraud Tag Kit for General Apparel – 48 Seals

$28.95
Shoe security tag. Sneaker security tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Shoe security tag. Sneaker security tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
E-commerce return security tag pack. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
360 ID Tag Design Benefits unique serial number tamper evident security seals 10mm
Eyewear security tag. Sunglasses security tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
E-commerce return security tag on jewelry. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals
Ring with secure return tag attached to prevent wear and return fraud. 360 ID Tag
E-commerce return security tag on jewelry, watches. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Stop fraudulent returns. 360 ID Tag.
Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals

Return Tag Kit for Jewelry, Shoes & Accessories 10mm – 200 Seals

$43.95
Handbag return tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to handbags, accessories to stop fraudulent returns. 360 ID Tag
Handbag return tag. E-commerce return security tag. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to handbags, accessories to stop fraudulent returns. 360 ID Tag
E-commerce return security tag through jacket button hole. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag pack. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
360 ID Tag Design Benefits unique serial number tamper evident security seals 22mm
E-commerce return security tag on shoes. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
Compact Return Tag Kit for Belts, Bags, Straps & Buttonholes – 192 Seals

Compact Return Tag Kit for Belts, Bags, Straps & Buttonholes – 192 Seals

$43.95
E-commerce return security tag on wedding dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on wedding dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag on dress. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag pack. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
360 ID Tag Design Benefits unique serial number tamper evident security seals 22mm
E-commerce return security tag on jeans. Prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. Add return tag to clothing, shoes, accessories to stop fraudulent returns. 360 ID Tag.
E-commerce return security tag tamper evident seal void on dress to prevent return fraud like wardrobing, wear and return, counterfeit product switches and tag switches. 360 ID Tag.
Return Tag Kit for Dresses, Coats & Formalwear – 48 Seals

Return Tag Kit for Dresses, Coats & Formalwear – 48 Seals

$43.95

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