PayPal's new refund policy has sellers up in arms

I posted local sales only for a very large package. A buyer from Iowa jumped in and bought it. My fee is 118 and change. From the moment he paid his money I was charged the sale local sales only be damned. I couldn't sell it to him and am now trying to sort it out with Paypal.
 
Am I missing something, if I sell an item for$1000 And PayPal takes $29 then I refund seller I am out of pocket $29 plus the extra $29 I need to put in to make up the buyers $1000 making me $58 out of pocket. ??
and if you charge free shipping you are out that
 
Last week I sold 2 large items on ebay ($4,800 / $6,300 including tax) and within 15 minutes, both of the buyers wanted to cancel their order. One of these canceled orders was a buyer who accidentally paid with his credit card instead of his company's so he wanted to re-order and pay with the correct card. The other accidentally ordered. After refunding both, I had about $321 less in my account than when I started the day. The $6,300 buyer ordered again with the correct CC and I was charged $182 again so my total paypal fees for these transactions are $503. That $503 is gone forever regardless of whether the buyer keeps the item or returns it.
I haven't felt this violated since I was mugged 13 years ago!
I called paypal to get this corrected and all they could tell me is their policy has changed and I'm free to close my account if I wish. My margins are very small, especially after ebay high fee's and the bottom line is that I'll be out of business in no time with this crazy policy (scam). After using paypal for the last decade, I closed my account for good.
 
I have similar experience as Jamis last week. Buyer bought something from eBay for $2400, and then told me he made mistake and want to cancel the order. I gladly refunded him, but then found my paypal account is less $76 from balance. Called paypal to explained what was happened to my case, but they just don't care. It is time to stop using paypal as a way of receiving money. No other payment companies on earth would do this to the user who generate profit for them. This is truly unbelievable and it a terrible decision made by paypal.

In another case for eBay selling, an unauthorized payment was used to purchase, I refunded the total amount, and noticed paypal is also kept the fees charge for incoming fund. Unauthorized get into my account, is this my fault? It is more looks like paypal's and eBay's fault. I have to pay fees.

Will be soon say good buy to these greedy middleman. They making too much and getting too greedy...
 
People should also check to see if they weren't refunded fees during the time period when PayPal was still supposed to refund them. There was about $150 in fees they kept on a large transaction, but some smaller ones around then were refunded, when I called paypal a customer rep first tried to tell me that they never refunded fees since the beginning of paypal, clear lie. Then I talked to a supervisor that said they probably can't refund the fee but they'll try to submit it for review....they never refunded it. They kept the fee when legally they weren't allowed to based on the user agreement at the time, but they didn't care. They are now going to lose thousands in fees from me since I've stopped using them
 
I am a day late and a dollar short. I had no idea Paypal was doing this. I know one of my seller accounts forced me to switch to a new Ebay payout system. I no longer have to deal with Paypal and my money goes straight to my bank account. Minus the Ebay fees. However my other account is not a business account so I still go through Paypal. I am going to either close that second account or quit selling on it.
 
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