A Problem Happened After BeatStars Implemented the Marketplace Fee of 12%: Double Payment Charged on BeatStars

Introduction

As a beatmaker, I use BeatStars to sell my creations. Recently, a strange thing happened: I was paid twice via PayPal for a single beat sale. This double payment led to a frustrating back-and-forth with the customer, BeatStars, and PayPal, highlighting some harsh realities for music producers.

The Double Payment Saga

After the customer alerted me to the double charge, I checked with both BeatStars and PayPal. BeatStars claimed they could only see a single transaction, while PayPal advised me to process a refund.

The problems were:

• I couldn’t figure out which PayPal transaction was linked to the BeatStars license, as their transaction IDs didn’t match.
• On the PayPal screen, it was stated that BeatStars’ fees would not be refunded, so even if the refund was processed, it would be impossible to fully refund the customer.
• PayPal’s fees are non-refundable, meaning a refund would put me at a loss. (However, after several conversations back and forth, PayPal was willing to refund the PayPal fee when I perform the refund.)

BeatStars’ Unhelpful Stance

BeatStars insisted they were not involved in the sale/purchase of beats and refused to refund their fees. They have quoted this line from the terms and conditions page.

The Marketplace Fee may be modified at BeatStars’ sole discretion at any time upon notice to you by email, which notice will be effective when made except as otherwise provided by applicable law. Marketplace Fees shall be calculated at the time of checkout and shall be non-refundable. Marketplace Fees shall be collected by the Third Party Processor in accordance with these Terms of Service, or by such other means as we may prescribe from time to time. If you do not wish to pay the Marketplace Fees as a Buyer, and/or Seller then you should not use The Services and/or discontinue your use of the BeatStars Platform.

https://www.beatstars.com/terms-of-service

I was incredibly disappointed. They happily collect fees, but shirk responsibility when issues arise. This stance seems especially problematic since they recently implemented a 12% marketplace fee, adding an extra layer of complexity and potential for headaches for both music producers and customers.

The Refund Process

After gathering various information, I’ve performed the refund process through the PayPal interface. Throughout the refund process, the refund amount to BeatStars was consistently shown as $0.04. In retrospect, this misrepresentation resulted in a lengthy interaction with customer support.

Misleading Information and Confusion

Had I known from the beginning that the customer would receive a full refund, I would have initiated the refund process much sooner. It is confusing and frustrating that the BeatStars refund amount was displayed incorrectly despite the actual full refund being processed. This misleading information caused unnecessary delays and confusion.

Identifying the Source of the Problem

At first, I thought the problem was on BeatStars’ side. However, it turned out that the problem was on PayPal’s side. Through this incident, I learned that BeatStars’ stance to not cooperate on refunds and the lack of transparency on PayPal’s screen can both lead to such misunderstandings.

Request for Improvement

I urge both BeatStars and PayPal to address this issue and ensure that accurate refund information is displayed to sellers. This will help streamline the refund process and prevent confusion for all parties involved.

Lessons for Music Producers

This ordeal taught me some important lessons as a music producer:

• Double payments on BeatStars can happen to anybody.
• When a problem occurs, I’m not sure whether to contact BeatStars or PayPal.
• BeatStars’ default stance is to not refund fees.
• PayPal may refund fees on a case-by-case basis.
• Incorrect information may be displayed on the PayPal refund processing screen.

Suggestions for BeatStars

To prevent similar issues in the future, I believe the following improvements are necessary:

1. Unify the transaction IDs between BeatStars and PayPal or make them mutually linkable
2. Provide more attentive and empathetic support to users

Suggestions for PayPal

1. Show correct amount on refund screen.

Conclusion

Interestingly, this problem occurred after BeatStars implemented a 12% marketplace fee. While the platform needs to generate revenue to maintain and improve its services, it’s worth questioning whether this fee structure is the best approach. The introduction of the marketplace fee seems to have added complications and headaches for both music producers and customers, especially when issues like double payments arise.

The recent double payment issue highlights the problems with the integration between BeatStars and PayPal.

Root of the Problem

The fundamental challenge with this issue was the inability to determine whether the problem was on BeatStars’ or PayPal’s side without actually attempting the refund process.

Improvement Requests

To prevent the recurrence of double payment issues and reduce the burden on sellers and customers, we strongly urge the following improvements:

• Enhanced information integration between BeatStars and PayPal
• Establishment of a quick response system for when double payments occur
• Provision of clear information to sellers
• Increased transparency in the refund process

BeatStars and PayPal are important platforms for music creators. I hope that this issue will be taken seriously and that prompt and appropriate responses will be taken.