PayPal Chargeback Tips

How to Respond to a Claim or Chargeback on PayPal

Respond to a Claim Filed in the Resolution Center

A buyer who is not satisfied with a PayPal transaction may file a claim in the Resolution Center. Learn how to respond.

Step 1 - Notification of claim

From time to time, a buyer who is not satisfied with a PayPal transaction may file a claim in the Resolution Center asking for PayPal's help to resolve an issue with a seller.

The goal of the Resolution Center is to facilitate communication between sellers and buyers. Before filing a claim in the Resolution Center, a buyer must contact their seller and try to work out a resolution. You can avoid Resolution Center claims by working with buyers who contact you.

If a buyer files a claim in the Resolution Center against a transaction with you, PayPal will notify you by email and ask you to log into your account to review the details.

Some common reasons for a claim:
A buyer paid for an item but never received it
A buyer received merchandise that was significantly not as described in the eBay listing
Once a claim is filed, the funds associated with the transaction may be held until the issue is resolved.

Step 2 - Respond to claim

The next step is for you to review the claim details and determine how you wish to respond. You can agree that the buyer has a valid claim, propose a resolution, or disagree with the dispute.

Agree –If you agree that the buyer has a valid dispute, you can accept liability and process a refund to the buyer.

Resolve –You can choose to resolve the issue by offering a partial refund or by offering the buyer a refund if they return the merchandise.

If you choose to resolve the claim by offering a partial refund, PayPal will contact the buyer so that they can consider your offer. In cases where the buyer has indicated that they would accept a partial refund of a certain amount, PayPal will let you know.

Disagree – If you choose to disagree with the buyer’s claim, PayPal will request additional information about the transaction. For example, you may be asked to provide tracking information to confirm that you shipped the item associated with the claim.

You must let PayPal know how you would like to respond within 10 calendar days. Your participation is essential to the dispute resolution process and if you don’t respond within the required timeframe, the buyer’s claim will be granted and funds will be recovered from your account.

How to Respond to a Buyer Claim

Review the buyer's claim. Agree and accept liability, propose a resolution, or disagree with the buyer’s claim.
Buyer reviews your response and decides whether they agree to your proposed solution.
If the buyer agrees, the case is closed. If not, the case is assigned to experienced PayPal Dispute Resolution Specialist.

Step 3 - Buyer reviews response

If you agreed that the buyer has a valid claim and issued a refund, the case will be closed.

If you offered a partial refund, the buyer will review it and either accept or deny your offer.

If the buyer doesn’t agree with your proposed resolution or if you provided information to disagree with the buyer’s claim, the claim will be assigned to an experienced PayPal Dispute Resolution Specialist.

Step 4 - Claim is resolved

If you agreed with the claim or did not provide PayPal with requested information within the timeframe, PayPal will grant the buyer’s claim and recover funds from your account.

If your case has been assigned to a Dispute Resolution Specialist, the case details will be reviewed to determine whether the buyer has a valid dispute. The Dispute Resolution Specialist's decision is based solely on the facts provided by the buyer and seller.

The review process is usually complete within four weeks and may result in PayPal issuing a refund to the buyer using funds from your PayPal account. Once the decision has been made, the case will be closed.

Go to the site NOW: PayPal Resolution Page

Last modified: July 04, 2010