Credit Card Fees on Refunds.

lon_don

A bit OT, but 2.5% seems a bit high for card payment fee. You haven't said who your payment portal provider is, but unless your contract comes with other bundled services, many other online payment services like Sumup Dojo Lopay etc... charge less than 2.5%, without negotiation, including Amex, even for online payment via link.

DullGreyGuy

MikeHoncho said:

eskbanker said:

MikeHoncho said:
But my annoyance is i'm the one who gets shafted because a customer changed their mind.

But that's an inherent part of selling goods online in the UK, i.e. you have to comply with the consumer rights legislation, which does indeed entitle customers to cancel purchase contracts for a full refund.  Having said that, you are entitled to charge them for the return postage costs if you feel that this would offset your card costs, provided that you use the correct form of wording in your terms....

Im annoyed in myself its took me nearly 9 years to realise this... I've just worked out that its cost ME nearly £3000 in 2024 in these Non-Refundable processing fees from orders people have cancelled due to changing their mind.

The consumer is protected - but what about the business?

Its make me feel really sick....!

Businesses are considered grown ups who have the resources to understand the law, the contracts they enter into and work out their pricing considering all these things. 

Consumers in the UK are highly protected from themselves by the state and have wide ranging rights compared to countries like the US. This is a significant factor in why products cost more in the UK than the US because all these additional protections cost money and must be built into the price. 

There are many payment processors out there and they all have very different approaches to fees for payments and refunds. Its always worth shopping around to ensure that the fee structure your on is best for how your business is running. For some no standing charge and higher processing fees are better, those with higher volume the higher standing charge but lower processing fees may be better. Some charge for refunds, some dont, some refund part or all the fees for the refunded transaction, some dont. It's complex, it's why brokers exist.