How To Manage Disputes, Claims, and Chargebacks in PayPal

Emily VuittonChargeback Responses2 Comments

How to resolve disputes in PayPal

Disputes are not inevitable. You just can’t expect them to never appear in your PayPal account. We recently talked about how merchants can avoid disputes, claims and chargebacks in PayPal (merchant descriptors, shipping insurance the whole nine yards within this article). But the sad truth is at least one of these actions will fall into the cracks. And for every action, you’ll have to react accordingly and navigate through PayPal’s Resolution Center. This article will explain how to manage disputes, claims, and chargebacks in PayPal. And took make it more riveting, we created a video will show you exactly where you need to be to manage customer disputes of every kind in the PayPal Resolution Center (Let us know if this helped you along the way. We love to improve).

First, you’ll need to login to your PayPal account. Once you’ve logged in, select Resolution Center under More in the main menu.Main Nav - PayPal Resolution Center

The Resolution Center is the hub of all customer disputes, claims, and chargebacks in your PayPal account.

PayPal Resolution Center

There’s a summary menu in the upper left that displays the number of open cases, the number of cases requiring your attention, and the number of disputes under PayPal review. It also provides the volume of closed cases.Resolution Center Cases TableThe large table below the summary provides details on the cases summarized in the aforementioned menu. From left to right the columns are labeled and defined as:

  • Other Party: The customer involved in the disputed transaction.
  • Case ID: Unique number assigned to each dispute, claim, and chargeback.
  • Reason: The cause for the dispute, claim, or chargeback.
  • Amount: Disputed amount; can be full or partial transaction amount.
  • Opened: Date the dispute, claim, or chargeback began.
  • Status: Describes whether the case is open, requires your attention, or is being reviewed by PayPal.
  • Last Updated: The most recent date of activity regarding the dispute, claim, or chargeback.
  • Action: If a seller response is required, this column will indicate ‘Respond’. If no action is required, ‘View’ will populate.

3 Types of Cases in PayPal

PayPal distinguishes three types of cases: disputes, claims, and chargebacks. A dispute is where the buyer opens up a case to discuss issues associated with the transaction with the merchant. Claims, on the other hand, represent the escalation of a dispute that requires mediation from PayPal. A chargeback takes it a step further, making the issuing credit card network the decision maker.


PayPal Claim Buyer-Seller Chat

Clicking a Case ID of a dispute will take you to the platform provided by PayPal for buyers and sellers to have a conversation regarding a transaction. The seller can message the buyer, send an offer, accept the buyer’s request, or escalate to PayPal, where the dispute becomes a claim.


PayPal Claim Details - Top

Clicking the Case ID of a claim will take you to the claim information page, where the claim reason is the page header. As you can see, the claim page is very different than the dispute chat. Information is provided on the transaction ID, invoice ID, buyer name and email, transaction date, the reason for the dispute, date of complaint, status, and status details. Status details provides further information on the claim, how to resolve the claim, and the time limit to respond.

PayPal Claim Details - Bottom

Files, faxes, and notes can be uploaded by the seller by selecting Resolve Claim Now. Doing so brings you to a page detailing your response options.

Claim Response Options PayPal

As the seller, you have three response options: provide shipping information, refund the customer, or provided evidence you have already refunded the customer.

PayPal Claim Response - Shipping Information Detail

If you respond to the claim with shipping information, you may do so by providing online tracking information or by uploading proof that the item was shipped.


PayPal Chargeback Details - Top

Selecting the Case ID of a chargeback brings you to the chargeback detail page. As with claims, the transaction ID, invoice ID, buyer name and email, transaction amount and date, and reason for dispute are all listed. Additionally, a chargeback reason code is provided that describes the specific case in more detail.

A chargeback amount is also now provided. It represents the refunded amount already provided to the customer by their issuing bank, which you are responsible for crediting to the issuing bank should the customer win the chargeback. PayPal also charges a fee for chargebacks filed against you, which is typically $20 per chargeback.

PayPal Chargeback Details - Bottom

Responding to a chargeback in PayPal is similar to responding to a claim. You can provide shipping information, other compelling evidence, refund the customer, or accept liability for the transaction.

Resolve Chargeback in PayPal - Evidence Option

Again, you can provide additional evidence other than proof of shipment to respond to the chargeback. Selecting ‘I can provide evidence other than proof of shipment’ brings you to a page that provides suggestions of evidence to upload and the opportunity to upload those documents, as well as add any notes you may feel help clarify your chargeback response.

Chargeback in PayPal Additional Evidence Text Box or File Upload

The information you upload will appear on the chargeback details page and the status will change to ‘Being reviewed by PayPal’.

Once again, all of your disputes, claims, and chargebacks will be summarized in your Resolution Portal.

PayPal Resolution Center

If managing disputes, claims, and chargebacks in PayPal seems confusing, it’s because it is. An average employee spends over 2 hours responding to just one chargeback and only recovers 20 percent of their efforts. See how automating the dispute resolution process can transform revenue recovery for your business by scheduling a demo today.

Schedule a Demo with Chargeback