CODEWITHSUNDEEP
apipaypal
user3626441
user3626441

Reputation:

Paypal API and automated refunds

I would like to inquire about this: https://developer.paypal.com/docs/classic/express-checkout/ht_basicRefund-curl-etc/

How to initiate an automated refund based on a product ordered that is out of stock.

Example: Customer A goes to our website and orders product A. Product A is unfortunately out of stock but we did not notice it right away(restaurant). Instead of refunding people manually, can this API refund the person automatically based on a call back from our website.

Also when a refund is given, is there a charge?(Charge back), if yes, where can I find out about the cost per charge back. Finally, how long does it take for the refund money to reach the customer's account if the refund is initiated let's say 5 minutes after the sale.

Thank you,

Regards,

Ben

ps: I am posting the query here as I was sent to this website from the Paypal support page.

Upvotes: 0

Views: 138

Answers (1)

Drew Angell
Drew Angell

Reputation: 26036

You could do this using the RefundTransaction API from within an IPN script.

A general refund is not considered a chargeback. That only happens if you refuse to provide a refund for your buyer, so then they end up filing a dispute with their credit card company. The card company would then give them the money and take it from PayPal, who would then come back to you for it. That's when you would have to pay a fee for that chargeback. If I remember correctly that fee would be $25 for such a scenario.

So the refunds wouldn't be a chargeback, but you would lose the 30 cent transaction fee you pay when you do the original transaction. PayPal refunds you the percentage they take, but not the flat 30 cents.

Also, if this is something happens a lot PayPal may limit your account or it could cause you other little problems. Lots of refunds could mean upset customers, and PayPal doesn't want that...and neither should you.

So, all of that said, what I would recommend is that you handle the inventory control before the purchase is made. You're saying you could hit your database to check inventory and then automatically refund, right? Why not hit your database to simply disable the product purchase if the inventory is low instead?

Upvotes: 1

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