Complaint Review: Propay - Orem Utah

The resolution to this alleged rip-off can be found in the Payment Services Agreement, also known as "PSA," that all ProPay customers agree to when they sign up. The PSA can be found at this URL: http://www.propay.com/legal/psa.aspx Like many financial institutions, it can be a tedious document to read, but this paragraph helps us understand why fee's are not credited: "A. Fees. You will pay to ProPay fees for services in accordance with the Exhibit A, the Pricing Disclosure Statement which is incorporated into this Agreement by reference. Such fees will be calculated and debited from amounts due to you under the ProPay Account concurrently with transaction activity..." This means upon a successful transaction, you are immediately paying ProPay for said transaction. ProPay then deposits the amount owed to you into your account. This remaining amount is your "available funds." Now let's move on to the FAQ, under the "Refund a Credit Card" section: https://epay.propay.com/faq/faq_refund_a_credit_card.aspx In short: - You can refund a transaction with no fees for it's full amount if you do so before 2PM MST on the day it was processed. - Refunds incur a fee of $0.35, in addition to the fee's already taken by ProPay for services rendered to you (as outlined in the PSA) Financial instituitions are certainly known to have lots of legal-filled documents. As a business, consulting with an accountant, lawyer, or other confidant can be crucial with opening new accounts to avoid any unexpected "suprises." Having over 5 years of experience in the merchant field, I can attest that ProPay is among some of the more individual-friendly companies -- but by the mere fact they take a percentage of your sales will always generate complaints -- whether warranted or not.

Tyrone writes that every other (credit card processing) service refunds the processing fees. Who are they? I worked for Merchant Processing at a large bank, and no way did the merchants ever get refunded the processing fees. Those fees are charged by Visa and Mastercard, for the biggest examples, and if you know how to get in touch with THOSE entities, I'd love to know that also. No one knew how to actually get in touch with those corporations. This issue definitely did come up, and while the bank was very good about accommodating merchant requests, this was one they had no flexibility about, at all. They weren't just for under $17.00 either, they sometimes were for a couple of hundred dollars. As far as the End User Agreement/Terms of Service, where is it stated that they WILL refund processing fees? Something not stated is a lot harder to prove than something stated. Processing fees for items refunded are not typically refunded to the merchant.

You sold an item on Ebay for $499.00. The person paid and received the item, then WANTED A REFUND. You gave them the refund... OK, Why did they want the refund in the first place? It kind of sounds like you misrepresented the item to begin with. Since it was an Ebay sale, (I've been selling on Ebay for 7 years), then most items are NOT returnable. Why else would they want a refund? You didn't say what the item was, but if the buyer made the mistake of ordering the wrong thing, then it is the buyer's fault. If it was damaged in shipping, then the insurance would handle it. So, back to my theory, a misrepresented item is sold, and returned, and you're upset that Propay misrepresented their terms and conditions.... hmmm

You sold an item on Ebay for $499.00. The person paid and received the item, then WANTED A REFUND. You gave them the refund... OK, Why did they want the refund in the first place? It kind of sounds like you misrepresented the item to begin with. Since it was an Ebay sale, (I've been selling on Ebay for 7 years), then most items are NOT returnable. Why else would they want a refund? You didn't say what the item was, but if the buyer made the mistake of ordering the wrong thing, then it is the buyer's fault. If it was damaged in shipping, then the insurance would handle it. So, back to my theory, a misrepresented item is sold, and returned, and you're upset that Propay misrepresented their terms and conditions.... hmmm

You sold an item on Ebay for $499.00. The person paid and received the item, then WANTED A REFUND. You gave them the refund... OK, Why did they want the refund in the first place? It kind of sounds like you misrepresented the item to begin with. Since it was an Ebay sale, (I've been selling on Ebay for 7 years), then most items are NOT returnable. Why else would they want a refund? You didn't say what the item was, but if the buyer made the mistake of ordering the wrong thing, then it is the buyer's fault. If it was damaged in shipping, then the insurance would handle it. So, back to my theory, a misrepresented item is sold, and returned, and you're upset that Propay misrepresented their terms and conditions.... hmmm

I know a lot about credit card processing and I have worked for American Express so I know a lot about processing fee's. It isn't ProPay that charged you those processing fee's it is the credit card company. They probably charged you a little bit more than the credit card companies charge, but they are a business and just like all business they are in the business of making money. So you shouldn't be blaming ProPay for not refunding those fee's, you should be blaming the credit card company. And as "K" said it is just like you not refunding the shiping and handleing. Just think about it. We are all just trying to make a little more money.

I tell my customers upfront in the listing that the shipping is not refundable. Propay did not, they did not mention a non-refund on fees on any document or screen. They are just making up rules as they go along. That is a BIG difference. What if every company just made up rules as they went along because they forgot to mention it in there agreements!

I am also a customer of Propay! To me it seems like she did not know the information and was trying to offer a solution and get you the information that you requested of her. From a business standpoint i understand both sides. but look at it this way. What is the reason you are keeping the shipping charge for your customer that wanted a refund? you still provided a service that cost you money correct? No look then at propay? you are a customer that is requesting a refund? It sound's like they are keeping there version of shipping fee's. Of course they probably have the ability to refund you. But if YOU had to refund every charge like that you would not make much money at all. So i would say give Propay a chance because they are in business like the rest of us.