I got a reply from eBay team as follows:
"Hello ,
Thank you for contacting us.
I understand from your email that you wish to get the Final Value Fee credit.
Let me inform you, that if a seller does not enter the shipping details for an item after the Paisapay has confirmed the buyerโs payment within the stipulated timelines, Paisapay system marks the item for a refund. When this happens, the buyers complete payment towards the item is refunded and the seller is provided a manual credit towards Final Value Fee charged on the transaction.
From June1โ09, sellers are provided a manual credit for the Final Value Fee charged, only if their system initiated Refunds approved are below 1% of the total Paisapay transactions done in a month.
For example, if a seller has 100 transactions in a month, out of which 5 were approved for system initiated Refund, In such a case, the Seller will be provided Final Value Fee credit only for the initial 1% approved system initiated INR (i.e. Initial 1 approved System Initiated Refund transaction).
Sellers who have less than 10 transactions in a month or who have 2 or less System initiated approved Refunds in a month are exempt from the above policy. Such sellers will be provided Final Value Fee credit for all approved System initiated INR transactions.
As your Refund does not fit in the 1% formula, we regret to inform you that our system is unable to post the credit for the same.
I hope the information provided was useful. If you need further assistance, please feel free to contact us again by simply replying to this email.
Regards,
Jagdeep singh
eBay India Customer Service Team"
The bottomline is that you will get Final Value Fee Credits only if your total approved refunds (Seller Refund + System Refund + Buyer Initiated Refund) are less than 1% in a month. This is impossible in real world scenarios of both offline and online stores. eBay wants to mint money from the hard working sellers by publishing these Herculean hard to achieve targets.