Capture – The pending authorization is then Captured.No money has been processed at this point. Authorization – The payment method is authorized, and the amount of the transaction is held so that it will be available for processing.When you process a payment with PayPal (or any processor), there is a two step procedure that occurs. Is this really PayPal’s fault, though? Or any payment processor, for that matter? Let’s review some details of how we might help ourselves avoid this problem. Especially if your are selling high dollar items and this is happening often. Understandably, this could be extremely frustrating. I have good product descriptions and pictures, but buyers do not read well, and it’s too easy for them to file and win disputes. I am selling on eBay, and I get lots of orders where the buyer cancels before I ship the product. When I ask this question I almost always get some form of the following replies: If this policy change is a problem for you, my question then would be “why are you processing so many refunds?” Of course, this is true…if you are processing lots of refunds. When you hear that your fees will no longer be refunded, you instantly consider that this will result in lost profit due to increased expenses. If You Are Upset, Why Are You Processing So Many Refunds? The primary reason people are upset about is, well…money. Why should they have to eat the cost of the resources involved with processing millions of refund transactions because sellers aren’t following proper procedures to avoid them? Is it their fault your customer wanted a refund? Instead, you used a payment processing service (again, they all work this same way) and they charged you for using their service. Then, for the refund, you would have to repeat that process over again. You could have used cash or check, mailed envelopes and purchased stamps, waited on time in the mail, deposit check at the bank and wait on it to clear. Then, when your buyer wanted a refund for one reason or another, they processed that refund for you quickly, easily, and securely. They provided their service for you to process the order payment quickly, easily, and securely. Really? How exactly is this, I would ask.? You did use PayPal’s service exactly as advertised, right? Others are claiming that PayPal is just being greedy. Many are making claims that PayPal is stealing their money by keeping fees when they process refunds.

Paypal goods and services fee