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I'm just setting up a PayPal account that I'm intending to use immediately for an overseas transaction.
Upon registering for the account I was offered the opportunity to sign up for / activate the Refunded Returns service
https://www.paypal.com/au/webapps/mpp/clickthru/returns-logi…
which seems to be free to "PayPal account holders who have registered for it at https://www.paypal.com.au/returns/ ".
The T&Cs for the Returns service seems to be the same page as the Refunded Returns service, and following the link to "sign up for free" for the Returns service seems to take me to the page for creating a PayPal account.
Could someone kindly inform me if there is a catch to activating the Returns and/or Refunded Returns services (e.g. any cost, hidden cost, automatic charge afer 12 months, etc).
Also, do I need to activate this in advance of a purchase, or could I wait until I need to return an item to activate the service?
Offering a completely free refund service seems to good to be true, how do PayPal afford to do this?
(My reading of the T&Cs is being hampered by a 2-year old jumping all over me).
Activate it now; no hidden catches. I have used it once and received a full refund for the cost of return postage ($16+). Just make sure you follow the rules if you intend to use it, e.g. have your parcel delivered to an Australian address.
PayPal make their money from the seller in the form of transaction fees. The more customers that use their payment platform, the more money they make; hence incentives such as Refunded Returns ensure you the customer use their service over other payment methods.
FYI - If you have a overseas fee free credit card such as 28 Degrees and are purchasing from overseas, make sure to select the option in PayPal that allows you to pay in the overseas currency; the conversion rate will be better. "My Account -> Profile -> My Money -> My preapproved payments -> Update -> See Available Funding Sources (or Set Available Funding Sources) -> Conversion Options (for card you'd like to change this option)-> Bill me in the currency listed on the seller's invoice -> Submit" Instructions were posted on a forum in 2015 and may have since changed, but have a poke around for the option (Source