Swappa is constantly working to make buying and selling used tech as easy as possible. Our support team verifies listings before they go live in order to keep out junk devices and minimize confusion, ambiguity, and miscommunication. As a result, the overwhelming majority of transactions on Swappa go through without issue. However, occasionally a sale is reversed and a refund must be issued.
Transactions on Swappa go through PayPal in order to provide various marketplace protections for buyers and sellers. As a result, all refunds must be issued through your PayPal account center. PayPal may ask the seller to deposit funds into their account prior to issuing a refund, in order to cover the PayPal Seller Fees.
Unfortunately, Swappa has no control over this. However, we are aware of this issue and are actively working with PayPal to find a better solution. Keep reading to learn more about what you can expect when issuing a refund through PayPal and how to get back your PayPal seller fees.
PayPal and Swappa Fees
There are two fees that apply to every transaction made through Swappa: a PayPal Seller Fee and a PayPal Partner Fee.
- The PayPal Seller Fee is the standard fee that PayPal charges all sellers receiving payment through PayPal.
- The PayPal Partner Fee is a combination of the Swappa service fee and local sales tax, where applicable.
On Swappa, the PayPal Partner Fee is always paid by the buyer. In other words, buyers on Swappa pay the Swappa service fee and sales tax. In contrast, PayPal deducts the PayPal Seller Fee from a seller’s subtotal, and it is subject to PayPal’s standard fee schedule.
How do I get a refund from Swappa?
Nearly all sales on Swappa are final. Unless a seller specifically advertises that they accept returns in their listing prior to sale, the seller is not required to accept returns due to buyer’s remorse. However, as described in Swappa’s Market Policies, if an item is not as described, the buyer is entitled to a refund.
Issuing a refund on Swappa is simple. The easiest way to do this is to log in to your PayPal account, navigate to the Activity tab, click on All Transactions, select the payment you wish to refund, and then click Issue a refund.
From your PayPal account center, you can either issue a full refund or a partial refund, depending on what you and the buyer have agreed upon. Only issue a full refund once you have the product back in your possession. Finally, please inform the Swappa support team when issuing a refund, either through your item’s sales page or by using Swappa’s help form.
Why does PayPal want me to add money before issuing a refund?
When a transaction is reversed through PayPal, Swappa automatically refunds the PayPal Partner Fee to the buyer. However, prior to being able to issue a refund, PayPal may ask the seller to add funds in order to cover the PayPal Seller Fee. This is due to PayPal’s policy to charge sellers the PayPal Seller Fee when refunds are issued.
Unfortunately, this policy is not under Swappa’s direct control. However, Swappa is actively working with PayPal in order to find a better solution for sellers who need to issue refunds. Additionally, many Swappa sellers have reported success in contacting PayPal Customer Support in order to get a PayPal Seller Fee reimbursement. See below to learn how you can request a refund from PayPal.
NOTE: When issuing a refund, PayPal may erroneously report that $0 will be refunded by Swappa. This is a technical issue with PayPal; the entire PayPal Partner Fee (our service fee and sales tax) will be reversed once a transaction is reversed and a full refund is issued.
How to get back the PayPal Seller Fee after a refund
We at Swappa do not believe that sellers should have to pay PayPal Seller Fees when transactions are canceled due to buyer’s remorse or when refunding before shipment. However, if PayPal asked you to deposit funds prior to refunding a canceled transaction, we advise pushing PayPal for a reimbursement.
In order to have your PayPal Seller Fee reimbursed, you must contact PayPal Customer Support. Before doing so, you’ll need the following information:
- Your PayPal Email Address
- PayPal Payment Reference Number
You can find your PayPal Payment Reference Number by navigating to the Swappa My Sales page, selecting the appropriate sale, and then scrolling down to the Payments section.
After locating your Payment Reference Number, please contact PayPal Customer Support. There are many ways to do this, including PayPal’s Online Help Center. However, the most direct method is to speak with a live customer service representative:
- Dial 1-888-221-1162 to reach PayPal’s phone hotline
- Press the # key when asked for a 6-digit login code
- Say “Speak with a PayPal Representative” and provide the required account verification information
NOTE: PayPal customer service is available from 4 AM to 10 PM Pacific Time from Monday through Friday, and from 6 AM to 8 PM Pacific Time on weekends.
When contacting PayPal Customer Service, be prepared to explain why the transaction was canceled and why you are requesting reimbursement. If your issue isn’t resolved on your first attempt, you may wish to call again and request escalation to a customer service manager.
Swappa works hard to make buying and selling used tech as safe and easy as possible. PayPal facilitates this through its extensive buyer and seller protections. However, in the rare event that a transaction must be reversed, PayPal policy may require a seller to add funds in order to cover the PayPal Seller Fee.
We realize this situation is far from ideal, and we are actively working with PayPal in order to change their policy. Thank you for your patience while we find a better solution.
