Square to no longer return processing fees when buyers are issued a refund
1–10 of 176 posts
Re: Square to no longer return processing fees when buyers are issued a refund
#2it was only a matter of time given that Stripe has a penalty too
Re: Square to no longer return processing fees when buyers are issued a refund
#3it was only a matter of time given that Stripe has a penalty too
I fail to see why there’s a penalty for a refund. A chargeback would be one thing, but a refund is a totally normal business process
Re: Square to no longer return processing fees when buyers are issued a refund
#4it was only a matter of time given that Stripe has a penalty too
I fail to see why there’s a penalty for a refund. A chargeback would be one thing, but a refund is a totally normal business process
It costs Square money (card network costs) to refund a transaction. It's not a penalty, it's just costs associated with moving money. Even if the money is moving the other way, there's still a cost.
Re: Square to no longer return processing fees when buyers are issued a refund
#5it was only a matter of time given that Stripe has a penalty too
I fail to see why there’s a penalty for a refund. A chargeback would be one thing, but a refund is a totally normal business process
It's not a penalty, it's just a cost of using the network.
If you use the credit card network not just once but twice -- once to process a purchase and then yet again to refund it -- you're using that infrastructure.
It makes sense you'd pay for its usage. If you drive to work on a toll road and then drive back home along the same toll road, you still have to pay the tolls even though you wound up in the same place at the end.
Re: Square to no longer return processing fees when buyers are issued a refund
#6This is now pretty standard across the industry. PayPal made the same change last year.
Re: Square to no longer return processing fees when buyers are issued a refund
#7it was only a matter of time given that Stripe has a penalty too
Which is a great reminder for all the purchasers of SaaS or other business services on here:
If the terms of one provider are noticeably different than the rest (and those terms have a directly measurable economic impact on the provider), it's marketing. It will likely get pulled as soon as the provider is at a large enough scale that they no longer need that marketing.
Re: Square to no longer return processing fees when buyers are issued a refund
#8Does anyone know if the "real big" merchants like Walmart have to pay the fee? I assume they're so large they can sit on the processors and squeeze them (I know Costco does, they pay 0% fees in-store because Visa is so hungry to be their processor).
Re: Square to no longer return processing fees when buyers are issued a refund
#9Earlier quoted context omitted.
I fail to see why there’s a penalty for a refund. A chargeback would be one thing, but a refund is a totally normal business process
It's not a penalty, it's just a cost of using the network. If you use the credit card network not just once but twice -- once to process a purchase and then yet again to refund it -- you're using that infrastructure. It makes sense you'd pay for its usage. If you drive to work on a toll road and then drive back home along the same toll road, you still have to pay the tolls even though you wound up in the same place a…
> If you drive to work on a toll road and then drive back home along the same toll road, you still have to pay the tolls even though you wound up in the same place at the end.
Funny you should use that example. On toll roads you get charged in both directions, but I've never seen a toll bridge that had tolls in both directions. Usually the argument is that you really can't go any other way so the toll in one direction covers the cost of both trips.
But I actually think you're right here -- most people won't make the "return trip" so it makes sense to only charge people twice that do.
Re: Square to no longer return processing fees when buyers are issued a refund
#10[dead]