Important account update:

We’ve changed how we process American Express refunds.

Effective July 10, 2012, if you initiate a refund via Virtual Terminal, PayPal Payments Pro or PayPal Payments Advanced, PayPal will no longer refund the transaction fee associated with the original charge.

Learn More

Here’s an example of the change:

Before July 10, 2012

If refund amount was $4.00:
  • Amount debited from merchant: $4.00
  • Transaction fees credited to merchant by PayPal = $0.14

After July 10, 2012

If refund amount is $4.00:
  • Amount debited from merchant: $4.00
  • Transaction fees credited to merchant by PayPal = $0.00

FAQs

When does the change take effect?
July 10, 2012

Do I need to do anything?
No action is required. If you would like to better understand your options, please contact us.

Why is PayPal no longer refunding the fee?
PayPal is updating this fee refund policy to meet Amercian Express requirements.

Does the change affect all American Express refunds?
No, just those made via Virtual Terminal, PayPal Payments Pro or PayPal Payments Advanced.