Offline and regular PayPal refunds will need to be arranged and processed between the merchant and the customer.
TruConnect
Refunds are based on the contract terms that are signed and agreed upon by the merchant. If you are unsure of the terms, please reach out to the Trust Payments support team or your Trust Payments account manager.
For example:
Assuming the merchant 20p fee structure
The merchant later decides to issue a full refund to the customer for whatever reason
The customer receives a full refund of £100
The cost to you therefore is £2.00
TruConnect refunds can take between 5 and 10 days to reach your customer's account, depending upon the card issuer.
PayPal Commerce
The same as TruConnect, PayPal offer whole and partial refunds through the platform.
If a whole refund is processed then the processing fee of 3.4% is returned to your account, but the fixed fee of 20p is retained by PayPal.
For example:
A customer is charged £100 by a merchant
Assuming the merchant is on the standard fee rate (3.4% plus 20p), the merchant receives £96.40 into their PayPal account
The merchant later decides to issue a full refund to the customer
During the refund, PayPal credits the merchant £3.40
The customer receives a full refund of £100
The cost of the refund therefore is £0.20