Refund to Credit Card or PayPal in Ofbiz

[Ofbiz 开发]

Hi everyone,
I am a newbie to Ofbiz. Has anyone done the refund process in Ofbiz please?
How do we refund the money back to the purchaser's credit card / PayPal
account directly please?

And would the credit card company refund the commission fee charged on the
sale please? Thank you very much.

Kind Regards

Fong

[Ted Byers]

On Wed, Oct 3, 2012 at 10:01 PM, Ofbiz 开发 <[hidden email]> wrote:

> Hi everyone,
> I am a newbie to Ofbiz. Has anyone done the refund process in Ofbiz please?
> How do we refund the money back to the purchaser's credit card / PayPal
> account directly please?
>
> And would the credit card company refund the commission fee charged on the
> sale please? Thank you very much.
>
> Kind Regards
>
> Fong
>

Hi Fong,

I do not know the answer to the first question.  In fact, I would love to
see the answer to that (I suspect there is a form or two in there somewhere
that a merchant can use to issue a refund or handle other customer service
phone calls).

But, for the second, whether or not the processing bank or gateway would
refund the commission, I would say from experience working in the
transaction processing industry is no.  All of the processing banks and
gateways I have dealt with charge pr transaction fees for every type of
transaction (pre-authorization, capture, sale, void, refund and
chargebacks) as well as a percentage of sale volume.  You don't get fees
for sale or auth/capture transactions retuned if the customer gets a
refund.  Instead, when processing a refund, you are charged an extra fee
for the refund.  And chargebacks are hostile returns (where the customer
gets a 'refund' from the issuing bank if he can't get satisfaction from the
merchant; and these chargeback fees can range in vlue from $10 per
chargeback to well over $100 per chargeback).  The bank and gateway fees
are not contingent onthe satisfaction of the merchant's customers.  It is
up to the merchant to ensure that his customers are satisfied, and he must
manage his customer service in such a way that refunds and chargebacks are
very rare events.  The fees due for refund and chargeback transactions are
an incentive to the merchant to do so.  Processing banks face risks in the
form of having provided support to merchants who end up not being able to
pay their bills; in which case, their contractual responsibilities with the
credit card networks make them liable for refunds that the merchant doesn't
pay.  That is why the fees, especially for chargebacks, can be so high.
They represent huge risk for processing banks, and of course they want to
reduce that risk.  Another method of managing that risk that I have seen is
that many processing banks require a six month rolling reserve, set at a
percentage of gross volume estimated to be sufficient to cover all
chargebacks that would occur within six months of the original sale.

If you find a processing bank that will not charge fees on refunds and
chargebacks, or require a rolling reserve, and that will issue a refund of
the fees originally charged on a sale that is to be refunded, please let me
know.  They might prove useful for a time (but I doubt they'd be around
very long).  The risks they'd be courting are just too great to let such an
institution survive very long.

Cheers

Ted

[Ofbiz 开发]

Hi Ted,

Thank you very much for your in-depth answer!! Very helpful indeed!!

Kind Regards

Fong

On Thu, Oct 4, 2012 at 3:25 PM, Ted Byers <[hidden email]> wrote:

>  On Wed, Oct 3, 2012 at 10:01 PM, Ofbiz 开发 <[hidden email]> wrote:
>
> > Hi everyone,
> > I am a newbie to Ofbiz. Has anyone done the refund process in Ofbiz
> please?
> > How do we refund the money back to the purchaser's credit card / PayPal
> > account directly please?
> >
> > And would the credit card company refund the commission fee charged on
> the
> > sale please? Thank you very much.
> >
> > Kind Regards
> >
> > Fong
> >
>
> Hi Fong,
>
> I do not know the answer to the first question.  In fact, I would love to
> see the answer to that (I suspect there is a form or two in there somewhere
> that a merchant can use to issue a refund or handle other customer service
> phone calls).
>
> But, for the second, whether or not the processing bank or gateway would
> refund the commission, I would say from experience working in the
> transaction processing industry is no.  All of the processing banks and
> gateways I have dealt with charge pr transaction fees for every type of
> transaction (pre-authorization, capture, sale, void, refund and
> chargebacks) as well as a percentage of sale volume.  You don't get fees
> for sale or auth/capture transactions retuned if the customer gets a
> refund.  Instead, when processing a refund, you are charged an extra fee
> for the refund.  And chargebacks are hostile returns (where the customer
> gets a 'refund' from the issuing bank if he can't get satisfaction from the
> merchant; and these chargeback fees can range in vlue from $10 per
> chargeback to well over $100 per chargeback).  The bank and gateway fees
> are not contingent onthe satisfaction of the merchant's customers.  It is
> up to the merchant to ensure that his customers are satisfied, and he must
> manage his customer service in such a way that refunds and chargebacks are
> very rare events.  The fees due for refund and chargeback transactions are
> an incentive to the merchant to do so.  Processing banks face risks in the
> form of having provided support to merchants who end up not being able to
> pay their bills; in which case, their contractual responsibilities with the
> credit card networks make them liable for refunds that the merchant doesn't
> pay.  That is why the fees, especially for chargebacks, can be so high.
> They represent huge risk for processing banks, and of course they want to
> reduce that risk.  Another method of managing that risk that I have seen is
> that many processing banks require a six month rolling reserve, set at a
> percentage of gross volume estimated to be sufficient to cover all
> chargebacks that would occur within six months of the original sale.
>
> If you find a processing bank that will not charge fees on refunds and
> chargebacks, or require a rolling reserve, and that will issue a refund of
> the fees originally charged on a sale that is to be refunded, please let me
> know.  They might prove useful for a time (but I doubt they'd be around
> very long).  The risks they'd be courting are just too great to let such an
> institution survive very long.
>
> Cheers
>
> Ted
>