Helping you resolve cases

Cases can happen to any seller. Our goal is to make it as easy as possible to respond.

Understanding disputes, claims, and chargebacks.

If something goes wrong with an order, a customer may open a case. Common types of cases are disputes and claims, which are filed with PayPal, and chargebacks, which are filed with the card issuer. All cases can result in a temporary hold on transaction funds, so it is best to respond quickly.

Disputes filed with PayPal

Resolving a dispute filed with PayPal

When a dispute is filed into PayPal, this is considered the inquiry phrase of a claim or issue related to items not received or items significantly not as described. PayPal allows time for the buyer or seller to work together to resolve the issue filed amicably.

If your customer files a dispute with PayPal, the best approach is to work together to figure out what happened and decide on the best solution.

It’s best to respond to the dispute with your buyer as soon as possible before it turns into a claim. If you don’t respond quickly, we typically see buyers escalating their dispute to a claim approximately after 4 days. However, a dispute can be escalated into a claim within 20 days* from when the dispute is filed.


How to respond to your dispute

  • Step 1: Notification and login
    First, we’ll email to let you know you’ve received a dispute and place a temporary hold on the transaction funds. Your first step will be to log in to your PayPal account and click on Open Cases in the Resolution Center.

  • Step 2: Find your case
    Click on the Response Required tab to review.

  • Step 3: Respond
    Respond quickly to your buyer with an explanation of what happened and suggestions on how to resolve it. We recommend you respond to your buyer as soon as possible before they escalate it to a claim.

    Here are tips for responding to your dispute based on the issue:

    • Item Not Received
      For this type of case, you will need to share any relevant information explaining how you delivered the item or service.

      e.g. If you’re selling tangible goods and you haven’t shipped the order, share an explanation of why it hasn’t been shipped and offer a refund if necessary. If you shipped the order, share the shipping receipt or online tracking order with your buyer. Inform your buyer of the expected delivery times and when they may receive it from the courier. If you’re selling intangible goods, it is important to ensure you keep full documentation or records of the delivery of service, e.g. proof of download or email receipts.

    • Significantly Not as Described
      For this type of case, you will need to inform your buyer that the item or service provided is in line with item and service promised to the buyer before payment. Communicate or respond back with how you had accurately described the product or service and ensure you respond to the case with relevant details.
    You can find more information on how to provide the right documents for your case here.

    After responding, you can work together with the customer on a resolution and the customer may close the case. If you can’t reach a resolution, either of you can escalate the case to a claim.

    You can read more on our Help Center on how to respond to a dispute.
See Open Cases

*Timeline is subject to change. The buyer or seller may choose to escalate the dispute to a claim earlier rather than wait 20 days. If there is no response after 20 days, the case will be closed.

Tips for positive communication

Cases can happen to any seller and handling them well can go a long way towards keeping customers happy. Here are a few tips for communicating effectively throughout the process.

Assume the best

Begin conversations with an open mind and listen patiently. Many problems result from miscommunication or a simple human error, and this
is your opportunity to clear them up.

Stay focused on solutions

Take a proactive, friendly approach to resolving the issue and resist the temptation to let communications become negative as this can make coming to an agreement harder.

Be constructive

Let your customer know you want to find a resolution – they likely want the same thing. Showing mutual respect can help set the stage for a positive and productive conversation.

Think long-term

Give your customer a break today and you could open the door to more opportunities tomorrow.

Explore more ways to foster positive communications with customers and help avoid cases.

PayPal Seller Protection

For your peace of mind, PayPal’s Seller Protection program can help protect your online payments against unauthorized transactions and outcomes from transactional disputes or chargebacks.* Check your eligibility for PayPal Seller Protection to ensure you meet all requirements.

Learn more

*Terms and conditions apply.

Our information does not constitute legal, financial, or business advice. We are not responsible for your decision on disputes and chargebacks. Always do your own research and seek professional advice if needed.