New PayPal Payments Solution FAQ

Starting in September 2021, Discogs is making payments simpler with a new PayPal payments solution. You can find more details about how this payments solution works and how it benefits you on the blog

If you are a buyer, only orders from certain sellers will have this new checkout process. Please review our blog post and other help documents for more information.

To onboard the new PayPal payments solution, go to your Discogs Labs page where you will check the box next to PayPal Payments. Complete the setup in the Payment Information section of your Seller Settings by entering the email address associated with your PayPal account and clicking Connect to PayPal.

We’ll be regularly updating the FAQ as new questions arise.


How will invoicing on Discogs change after onboarding to the new PayPal payments solution?

After onboarding to the new PayPal payments solution, sellers will no longer receive monthly sales fee invoices. 

Instead, when an order is paid for, Discogs sales fees and taxes that are collected by Discogs will be automatically deducted and directed to the appropriate party, as outlined:

  • Discogs sales fees will be directed to Discogs.
  • Fee taxes, such as UK VAT, EU VAT, AU GST, NZ GST, and JCT will be directed to Discogs.
  • Order taxes, such as US Marketplace Facilitator  (MPF) sales tax, EU VAT, UK VAT, AU GST, and NZ GST will be directed to Discogs.
  • Order taxes, such as Remote and Resident US sales tax will be directed to the seller. 
  • PayPal's processing fees are taken from the gross payment amount and directed to PayPal (this is the same as the current practice with PayPal). 

When a refund is processed, sales fees and taxes are immediately returned.

Sellers can initiate a refund via the Discogs order page for up to 90 days after the order has been paid. Please keep reading below for more information on how to issue a refund.

 

How will the new PayPal payments solution affect Discogs sales fees?

Discogs charges an 8% sales fee for items sold based on the final sale price. Sales fees will be stated in the seller's listing currency. 

Minimum and maximum sales fees will be defined for each currency. We are aiming to keep these as close as possible to the USD amounts (minimum being USD $0.10, maximum $150). The new minimum and maximum sales fees are:

Name

Abbreviation

Minimum fee

Maximum fee

Australian Dollars

AUD

AUD $0.15

AUD $200.00

Brazilian Real

BRL

R$0.50

R$800.00

Canadian Dollars

CAD

CAD $0.15

CAD $200.00

Swiss Francs

CHF

CHF 0.10

CHF 150.00

Euro

EUR

€0.10

€150.00

UK Pounds

GBP

£0.10

£150.00

Japanese Yen

JPY

¥10

¥15000

Mexican Pesos

MXN

MXN $2.00

MXN $3000.00

New Zealand Dollars

NZD

NZD $0.15

NZD $200.00

Swedish kronor

SEK

Kr 1.00

Kr 1200.00

US Dollars

USD

$0.10

$150.00

 

What changes to listing currency options will there be? 

You will be required to sell in the primary currency that is associated with your PayPal account. 

Toggling currency settings within PayPal is straightforward. For most sellers, the process should look like this: 

  • Log in to your PayPal account.
  • Click Money at the top of the page.
  • Click Manage Currency.
  • Choose the currency to make Primary
  • Click Make Primary.

Discogs will set your currency based on your PayPal settings. 

Please note, the wording of these instructions may vary slightly depending on the region of your PayPal account. Check PayPal’s help documentation if you’re uncertain. 

 

How will payment methods available to buyers change after onboarding the new PayPal payments solution? 

Payment options available to the buyer include PayPal, credit card or debit card, and in selected countries, local payment options are available. Buyers can make payment with or without a PayPal account. 

Local bank transfer options will be available to buyers in selected countries and will be processed by PayPal. These include the following:

Service

Country

Mercado Pago

Brazil, Mexico

Sofort

Germany, Netherlands, Italy, Austria, Belgium, Spain, UK (GB only) 

iDeal

Netherlands

 

All payments on Discogs will be processed by PayPal.

Auxiliary payment methods not offered through PayPal, such as Bank Transfer, Cash, Check, Skrill, etc, will not be supported on the Discogs platform and will no longer be available in your Discogs shop after you onboard the new PayPal payments solution. 

 

How do I onboard the new PayPal payments solution? 

Once you click the Connect to PayPal button in your Seller Settings, you will be prompted to log in to your PayPal account. Once you login and connect your account, you provide Discogs permission to deduct sales fees and taxes at the time of payment on an order. 

When connecting, you’ll see the following agreement:

I authorize Discogs to: 

  • Use PayPal to process my customers’ payments. 
  • Initiate steps to authorize and capture my customers’ payments. 
  • Search through and access corresponding transaction data. 
  • Initiate a refund for a specific transaction. 
  • Access my email and location information for purposes of linking with my PayPal account for integration. 

 

How will order statuses change after I onboard the PayPal payments solution? 

After a buyer makes a payment, orders will move straight to Payment Received status and the Seller will be notified via your Discogs inbox, email, or both depending on your notification settings. 

Ability to adjust the order status via the order page before payment is made will no longer be available.

 

Will this resolve the PayPal : Discogs address discrepancy issue that some buyers and sellers have had in the past?

For the most part, yes. The buyer’s Discogs address is passed to PayPal and is the address associated with the transaction. The seller is eligible for Seller Protection by using the buyers’ Discogs address, even if it differs from the address that’s in the buyers’ PayPal settings. 

The buyer may select another address at the last moment when confirming their PayPal payment. If the address is left untouched, there will be no discrepancy. Although this issue isn’t completely resolved, the PayPal payments solution substantially reduces the possibility for an address discrepancy.

 

I’ve already added my PayPal account in my Discogs Seller Settings, do I need to do anything?

Yes, even if you already have your PayPal account connected to your Discogs account, you’ll be required to onboard the new payments solution to enable immediate payments with sales fees and taxes deducted. 

All you need to do is click the ‘Connect to PayPal’ button now available in your Discogs Seller Settings to onboard in minutes. You don’t need to make any changes to your existing PayPal account.

 

How can I keep track of my Discogs orders without being able to reference invoices?

We recently improved the data export functionality for Marketplace Orders and Marketplace Order Items, allowing you to isolate the date range of your data exports and easily access the information you need in CSV format.

 

How do I issue a refund?

Please issue a refund before making any order cancellations via the More button on the Discogs order page. You can then input a full or partial refund, as needed. All sales fees and taxes are returned when a refund is processed via Discogs, and the buyer does not need to confirm the refund for this to occur.

Note: Sellers must have enough balance in their PayPal account to issue a refund. Previously, PayPal would withdraw enough from the seller’s funding source to cover a refund. Now, sellers will need enough balance to cover a refund.

 

What happens when a refund is issued?

When a refund is issued the payment will be returned to the buyer in the payment method they used for the original transaction. This includes any fees and taxes collected at time of payment, excluding the PayPal transaction fee. 

Buyers please note, if you used a credit or debit card, the refund will appear on your statement as issued by PayPal, as PayPal is responsible for managing the transaction.

 

Why is my refunded amount different from the original transaction value?

If you made a payment for an item that was sold in a currency different from your local currency, the payment may be converted into the seller’s currency (if that currency is supported by Discogs). When a refund is issued on that transaction, the payment will be converted back to the currency you made the payment in. If the currency conversion rates differ from the date of the original transaction, there may be a discrepancy between the amount of the original payment and the refunded amount.

 

Can I merge orders after they’ve been paid for? 

Only orders that have not been paid for can be merged with the new PayPal payments solution.

 

Does the new PayPal payments solution have any impact on release sales history? 

In the early stages of the PayPal payments solution’s availability, sales won't contribute to a release's sales history. We aim to release this feature as soon as possible, which means near real-time sales history statistics on Discogs.

 

As a Seller, what happens to my Billing Page?
Although you’ll no longer receive a monthly sales fee invoice, your Billing Page and Sales Fees Invoice history will be preserved as-is for now. 

If you need to review recent sales fees, we recommend using the Order Export and selecting the desired timeframe.

 

What protection does PayPal offer sellers?
PayPal’s Seller Protection program “guard[s] you from losing money to claims and chargebacks”, particularly around “unauthorized transaction” and “item not received” disputes. 

To be eligible for seller protection, you may need to provide information like proof of shipment, or postal tracking. You can find out more about PayPal’s Seller Protection here

 

What if a buyer doesn’t have a PayPal account?

Buyers will still be able to checkout on Discogs with or without a PayPal account. Additional payment methods that can be used without a PayPal account include credit or debit card, and depending on where the buyer is located, they can pay using a localized payment method, like Mercado Pago (Brazil, Mexico), iDeal (the Netherlands), or Sofort (Germany, Belgium, Austria, the Netherlands, Italy, Spain, United Kingdom (GB only)).

 

What is the "Partner Commission" charge I see on my PayPal payment receipt?

"Partner Commission" is the term used to encompass the total Discogs fees. It includes our 8% fee for selling on Discogs, along with all applicable taxes. You will see this as a line item on your PayPal payment statement, describing the total costs we have taken from your buyer's payment.

 

When issuing a refund, do I need to calculate and remit taxes collected on the original transaction separate to the gross amount due to the buyer? 

When issuing a partial refund on an order where Discogs collected sales tax, enter the full amount that you wish to return to the buyer. In the below example, the seller is refunding a partial amount of $4.00 of the total $9.60 order total. 

FAQ_PPC_EN_2_.jpg

$4.00 is the total refunded amount that the buyer will receive, however this refunded amount will only draw $3.45 from the seller’s PayPal account. The remaining $0.55 of this amount will be automatically calculated and remitted to the buyer by PayPal, returning the proportion of the Partner Commission (Discogs’ sales fee and any sales tax collected in the original transaction). 

Note: sellers must have enough balance in their PayPal account to issue a refund. Previously, PayPal would withdraw enough from the seller’s funding source to cover a refund. Now, sellers will need enough balance to cover a refund. 

 

                                                                                                                                               

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