No more Paypal - Risks outweight the gains

When you find yourself in a situation where you have to do full refund to a customer for a NV unit that has been used for 2 months, housing opened in a non-sterile environment and on top of that Paypal says that they cannot even guarantee that merchandise will be returned after completion of refund, you start to question if the risks outweigh the gains. 

We also contacted the manufacturer’s (ACT) to get a second opinion on the case. Their statement was following: “Customer wants a refund as he was hoping to get a different system than ordered and communicated. Clearly it was obvious what he ordered and the hope to get something different than ordered, can not constitute a reason for a refund.”

Nevertheless, PayPal decided otherwise. Without providing any explanation, besides “We’ve been reviewing a case your buyer filed against you and previously decided the best course of action was to have them return your merchandise.” 

Is that really best course of acton for all concerned parties?

We are not the only ones

After doing some research, we learned more about other businesses’ experience with PayPal. Some of them even worse than our experience. PayPal left businesses without money and without the product. It seems that we’re quite lucky to get the unit back. But unfortunately, it’s not the case for all.

There are many cases where customer received full refund even after he has deconstructed the product and then tried to put it back together (of corse the unit didn’t work anymore…). Hence, this takes us back to initial question – does the risk outweigh the benefit? And we came to conclusion that it does not. 

Internet and Youtube is full of stories of businesses who have moved away from PayPal.

You are protected by EU e-Commerce Directive 

European Union has laid down legal framework to protect customers who purchase their goods in online environment. And at the same time EU found a reasonable balance between consumer and business rights. By keeping risks balanced, the businesses like us can keep lower risk margins and therefore offer better prices for customers.

Every customer who purchases a product or service within EU is covered by that regulation. You can learn more about your rights here

Refunds are a normal part of business. For example, it’s completely acceptable if a customer wants to return a unit within 2 weeks from receiving it and the unit is in the same condition as it arrived. We have had quite a few refunds this way and no issues so far.

Falconclaw's reputation

Keeping up our reputation and providing exceptional customer service is the best way to increase our business. No questions here! 

That is the reason why we are very open about the night vision devices we sell. For reach device in our shop we provide specification sheet with exact attributes of the tube (FOM, EBI, resolution, etc) and in addition provide pictures through tubes as well. On top of that you can find useful articles, demo videos and so much more in our blog. We put all this effort in to make sure you know what you are buying. Still, if you find that the product you received does not satisfy your needs, you are able to return it within 2 weeks from receiving it. You will receive full refund for the unit, if is in the same condition as it was sent out. No questions asked.

A path forward - reduce risk and prices

What Paypal is basically saying is that they expect businesses to take a risk that they might lose money as well as the product itself.

PayPal “Please be aware that due to consumer protection laws, PayPal cannot guarantee the return of your merchandise if the case is found in favour of the buyer.”

So, we asked ourselves a question – “if we close our PayPal account and therefore decrease risk and service fees, how much we can lower our prices?”

The answer was at least 5%. 

Since 70% of our revenue comes through direct payments, then why not provide all of our customers with better prices instead!

Let’s make it so!

Examples of new prices

Before

After

%

2 625€

2 415€

-8%

10 570€

9 650€

-9%

3 750€

3 550€

-5%

595€

550€

-7%

965€

895€

-7%

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