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).
You don't pay any fees to refund a payment for goods or services. But we don't return the fees you paid when you got the payment. paypal-refund-fee-reddit
As of April 2026, the general consensus across Reddit communities like , r/eBay , and r/Entrepreneur remains that PayPal does not return the original transaction fees to the seller when a refund is issued. This policy, initially introduced in 2019, applies to both full and partial refunds for goods and services. Key Reddit Discussion Points When you refund a buyer, you must provide
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. As of April 2026, the general consensus across
Redditors often worry that "trolls" or competitors could place large orders and immediately cancel them to drain a seller's balance via non-refundable fees.