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A chargeback is initiated when the customer contacts the issuing bank to request a payment reversal. Many of these chargebacks could be avoided. The more you know the proper procedures, the less likely you’ll run into issues that might result in a chargeback. As your partner, we’re here to help you resolve unwarranted chargebacks, and with our Seller Protection program, you’re protected for eligible payments against fraudulent transactions.


When a customer files a chargeback through their credit card company, we will notify you and hold the funds in question as we work with you to resolve it.


Submit your supporting documents or evidence through the Resolution Center to dispute the chargeback. We’ll represent you in negotiations with the credit card company, who makes the decision.


We’ll remove the hold once we’ve determined the transaction is eligible for Seller Protection.

Reasons for chargebacks.

Chargebacks arise for many reasons, but primarily for customer disputes and fraud:

  • Customer claims to have never received the goods as promised at the time of purchase;
  • Customer was shipped an item that was very different from the seller's description, or the item was damaged when the buyer received it; or
  • Customer claims they did not authorize the purchase, they did not make the purchase, or they were victims of identity or credit card theft.

Avoiding chargebacks and disputes.

Some chargebacks can be resolved easily without the merchant having to lose the sale. There are several ways to avoid possible chargebacks and disputes:

  • Provide contact information.

    Provide your email address or customer service phone number, or even call buyers in advance when you're selling higher priced items, so that buyers can talk to you about an issue first.

  • Be responsive

    Do your best to respond quickly and professionally to all reasonable buyer inquiries.

  • Suggest dispute resolutions.

    Suggest to your buyer in opening a dispute with the PayPal Resolution Center instead of filing a chargeback with their credit or debit card company.

  • Provide a clear return policy.

    Ensure you publish your return and refund policies on your website, auction listings and correspondence with customers, in clear and simple terms.

  • Give accurate descriptions.

    Provide information such as pictures, measurements and other relevant details on the item you are selling.

  • Issue refunds when possible.

    Avoid additional costs from chargebacks. Always use the refund link in the PayPal Resolution Center to issue a refund. Refunds issued outside of PayPal are not covered under our Seller Protection program.

We keep it fair.

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Frequently asked questions

What happens when a buyer files a claim or a chargeback for an item not received?

We will place a temporary hold on the funds in question and send you an email requesting proof of delivery.
For payments less than $750 USD (or its equivalent in another currency), you will need to provide proof of shipping that can be viewed online
For payments of $750 USD or more, you will need to provide a proof of delivery with signature confirmation that can be viewed online.

Once we've received the evidence, we’ll determine your eligibility for Seller Protection. If you’re eligible, we’ll restore your access to the funds.

What happens when a buyer files a claim or a chargeback for an unauthorized payment?

We will place a temporary hold on the funds in question and send you an email requesting proof of shipment. Once we've received it, we’ll verify your eligibility for Seller Protection. If you are eligible, we will lift the temporary hold and restore your access to the funds as soon as possible.

What are the most common reasons unauthorized chargebacks aren't covered by PayPal Seller Protection?

Delayed or non-response: To help us determine if you're eligible for Seller Protection, you must respond through PayPal Resolution Center within 10 days and provide proof of shipment for unauthorized claims or proof of delivery for item not received claims.
We were unable to verify that the order was shipped to an approved address:

Shipping receipt or online tracking number doesn't show where the order was delivered.
The address doesn't match the customer's address on the PayPal Transaction Details page.

The item sold was delivered in person or picked up