Shopify is a limited platform. Everything is "get a Shopify expert" or "install this app" (which slows down the site and impacts performance metrics). This issue with the transaction fees not being refunded is pretty much the straw that broke the camel's back for me. I am going to be migrating off Shopify and onto WooCommerce with Square as payment processor who absolutely does refund transaction fees.
...with Square as payment processor who absolutely does refund transaction fees.
Hi - I was looking on their site and didn't spot that in their terms. Where did you find it?
In any case, thank you *SO* much for suggesting to check out Square. They have some very economical plans for basic (and not-so-basic) hosted eCommerce sites... complete with image hovers, URL redirects, SSL certificates, basic inventory management, gift cards, Instagram integration, support for multiple discounts... pretty much everything a small site needs all in the base package. Their theme layout choices are pretty limited, and I'd have to lose some of my fancy Liquid custom programming, but I'm totally sold!
square does not keep transaction fees either. I actually thought they were somehow associated but they aren’t.
Point being this is unethical.... and gladly not everyone does this. I am going to drop Paypal from my site once i migrate. They do it too.
Just some notes to pin to the end of this thread in case anyone wants some quick info:
1) If you use Shopify payments, you will be charged their % fee (2.9%) and 30cents... If a customer asks to cancel their order, or you cancel it for any reason. You will LOSE this fee.
2) If you use THIRD PARTY payment provider, you will be charged 2% by Shopify, and also 2.9% (or such) + 30cents (or such) from third party provider... If you issue a refund, SHOPIFY WILL NOT refund your 2%... your THIRD PARTY MAY OR MAY NOT issue you a refund on their %, depending on their terms. But if they do.. you’re already OUT 2% from SHopify... chances are, it WILL COST YOU MORE USING A THIRD PARTY PAYMENT PROVIDER, becuase you will be paying 2% ON EVERY SINGLE TRANSACTION... whatever you may gain back from 3rd party refunds, you’ve lost to SHOPIFY.
3) If you use SHOPIFY payments, and customer opts to use PAYPAL - you won’t’ pay 2% or 2.9%, but you’ll be bound by PayPal’s fee structure and refund policy. Also, you can’t FORCE your client to use PayPal... you MUST enable Shopify payments in order to take advantage of NOT being charged 2% for 3rd party transactions at PayPal.
If you want to stay with Shopify: NONE.
If you want to switch to another e-commerce platform, if you’re able to find a company with a more lenient refund policy, you will be bound by that OR by your 3rd party processors policies (Stripe for example does not refund fees for refunded orders).
If you want to continue: either we eat these fees (so, if 20% of your orders get refunded, you’re overall cost of sales goes up by less than a percent)
Or you put a clause in your terms and conditions that says you will charge a % fee for any cancelled transactions... and hope you are not losing repeat business, or a potential future customer... because that person will be angry when they ask for a refund and lost 3-5%.
I agree this is absolute hogwash and a complete money grab.
We use SQUARE as our other POS and they ALWAYS refund the transaction fees IN FULL when any refund is processed through SQUARE.
So does PAYPAL.
What's so special about you Shopify that you get to screw your merchant customers over by makign them eat your fees even when they refund the customers money in full?
Outrageous. Will make sure we don't process any larger sales online through our website or tighten our terms of service. Shopify kind of forcing our hand to do so.