Why does PayPal charge a fee when I receive a chargeback?

When a chargeback happens, the amount of the chargeback is taken from PayPal. In addition, a settlement fee is applied for the cost of processing the chargeback.

If you’re covered by Seller Protection, PayPal will cover you against the costs of both the chargeback and the settlement fee.

If you’re not covered, PayPal may still be able to help you to dispute the chargeback but in the meantime we’ll reverse the amount of the transaction plus a settlement fee of £14 per chargeback filed.

It’s not possible to dispute the chargeback in all cases.

To help you better understand chargebacks and avoid situations that might lead to them, you should see our Chargeback Guide.