• What is PayPal Dispute Resolution and how will it work?
• I've always used email or telephone communication when I've had problems in the past. Why do we need the PayPal Dispute Resolution process?
• What is a dispute?
• What is a claim?
• What is a chargeback?
• How do I initiate the PayPal Dispute Resolution process?
• As a buyer, what steps should I take before filing a dispute?
• Can I re-open my dispute if it times out?
• As a seller, how will I know if a dispute has been filed against me?
• What do I do if I initiated the PayPal Dispute Resolution process but later the seller and I resolved the problem outside PayPal?
• What if we work out the problem but the buyer later files a chargeback?
• What if a dispute was opened but the seller has a tracking number showing that the item was delivered?

What is PayPal Dispute Resolution and how will it work?
PayPal Dispute Resolution, an enhancement to the PayPal Resolution Center, allows buyers and sellers to work out a buyer's transaction problem.  It is the first phase of buyer complaint and buyer protection at PayPal.
 
As a buyer you can open a dispute if you experience a transaction problem. When you report the dispute in the PayPal Resolution Center you can indicate whether the item in question has not yet been received or the item you received is significantly not as described. By opening a dispute, you are asking the seller to help you resolve the problem. You can communicate directly with the seller by posting messages in the PayPal Resolution Center until the issue is resolved or if you are not able to reach an agreement and decide to escalate the dispute to a claim.

To open a dispute, please follow these steps:

1. Log into your account at https://www.paypal.com/
2. Select the "Resolution Center" tab.
3. Click "Open a dispute."
4. Enter or select the PayPal transaction ID for the transaction you would like to dispute.
5. Review the transaction information and select a reason for opening the dispute.
6. Enter in the details of the transaction and initiate communication with the seller in the "Compose Message to Seller" box and click "Continue."

Please note:  You have up to 45 days after the payment date (not to be confused with the eBay transaction close date) to open a dispute. The dispute can be escalated to a claim with PayPal at any time within 20 days of the date the dispute was opened by either the buyer or the seller. By escalating a dispute to a claim, you are asking PayPal to investigate the case and decide the outcome based on evidence supplied by both buyer and seller. Buyers will usually escalate to a claim if they feel that it is not possible to work out a resolution directly with their seller. Sellers might escalate a dispute to a claim if they would rather not communicate with a buyer or if they have evidence to support their contention that a buyer's claim is fraudulent.

To learn how the dispute process works, review our step-by-step tutorial in the PayPal Resolution Center.

I've always used email or telephone communication when I've had problems in the past.  Why do we need the PayPal Dispute Resolution process?
Direct communication via email or telephone is a great way to resolve a transaction problem, and we encourage you to use it whenever you have a concern. The PayPal Dispute Resolution process can help in situations where you haven’t been able to reach the seller by telephone, or emails aren't getting through (perhaps because contact information in the PayPal system is incorrect, or emails are getting caught in spam filters). Communications through the PayPal Dispute Resolution process also take place "on the record," so if the dispute is escalated to a claim PayPal will be able to review messages that have already been exchanged and to use this information to decide the outcome of the claim.

What is a dispute?
A stage in the communication where buyers and sellers can post messages directly to each other with the goal of finding a mutually acceptable resolution to a buyer's transaction problem.

What is a claim?
A claim is typically an action taken by a buyer against a seller when they've purchased an item and it either didn't arrive or it arrived but was significantly different from the item description.  Claims require PayPal customer support to render a decision either for or against the seller based on evidence collected from both parties. The claim process begins with PayPal Dispute Resolution. 

What is a chargeback?
A chargeback occurs when a buyer asks their credit card company to remove a charge for an item from their credit card statement. Many chargebacks are the result of the buyer not receiving an item, receiving an item that is different than what was described, or unauthorized use of their account.

If sellers accept credit cards, whether in a brick-and-mortar store or online through PayPal, they may encounter a chargeback from a buyer. Chargebacks are an unfortunate but realistic cost of doing business, and many sellers factor this cost into their business risk model.

PayPal helps sellers fight unwarranted chargebacks. Sellers can provide PayPal with evidence to dispute the chargeback through the PayPal Resolution Center, by email at chargeback-response@paypal.com, or by fax at 402-537-5755. PayPal uses this evidence plus any evidence PayPal may already have (including messages posted by the buyer and seller during the PayPal Dispute Resolution process) to investigate the chargeback with the buyer's credit card company.

PayPal reserves the right not to dispute a chargeback even if the seller has provided some evidence, particularly if PayPal believes the dispute is not likely to be successful.

PayPal offers sellers a way to protect themselves against chargebacks when they follow the terms of our seller protection policy. However, if a seller has not followed the seller protection policy, that seller may be responsible for the amount of the chargeback.

To help you better understand chargebacks and how to spot and prevent situations that might lead to chargebacks:

1. Go to the Merchants Tools tab
2. Click the "Security for Merchants" link under Business Services
3. Click "PayPal fights Chargebacks" under "We help shield you from liability."

You can also learn how to respond to a chargeback by reviewing the step-by-step tutorial in the PayPal Resolution Center.

How do I initiate the PayPal Dispute Resolution process?
To open a dispute, please follow these steps:

1. Log into your account at https://www.paypal.com/
2. Select the "Resolution Center" tab.
3. Click "Open a dispute."
4. Enter or select the transaction ID for the transaction you would like to dispute.
5. Review the transaction information and select a reason for opening the dispute.
6. Enter in the details of the transaction and initiate communication with the seller in the "Compose Message to Seller" box and click "Continue."

Please note:  You have up to 45 days after the payment date to open a dispute. The dispute can be escalated to a claim with PayPal at any time within 20 days of the date the dispute was opened by either the buyer or the seller.  By escalating a dispute to a claim, you are asking PayPal to investigate the case and decide the outcome based on evidence provided by both buyer and seller. Buyers will usually escalate to a claim if they feel that it is not possible to work out a resolution directly with their seller. Sellers might escalate a dispute to a claim if they would rather not communicate with a buyer or if they have evidence to support their contention that a buyer's claim is fraudulent.

As a buyer, what steps should I take before filing a dispute?
Before you open a dispute, it's usually a good idea to make sure you: 

• Review all emails from the seller and the transaction terms carefully.
• Email and call your seller.
• Ensure PayPal has your correct contact information.
• Check your spam filter for missed emails.
• Allow reasonable time for shipping (especially international shipping).

Can I re-open my dispute if it times out?
No. After 20 days, the dispute is automatically closed and cannot be reopened. 

As a seller, how will I know if a dispute has been filed against me?
PayPal will send an email to notify the seller after a dispute has been filed. The seller will also receive notification through the Resolution Center banner on their Account Overview page. The buyer can communicate directly with the seller to resolve the problem through the Dispute Details page in the Resolution Center.

What do I do if I initiated the PayPal Dispute Resolution process but later the seller and I resolved the problem outside PayPal?
To close a dispute, go thePayPal Resolution Center. When closing the dispute, summarize how you and the seller were able to arrive at a resolution for this dispute. Wait until you are 100% satisfied that the dispute is resolved before closing the dispute. A closed dispute cannot be re-opened or escalated to a PayPal claim. 

What if we work out the problem but the buyer later files a chargeback?
If the buyer later files a chargeback, PayPal may use any relevant evidence posted by either member on the dispute case to contest the chargeback. For example, if the buyer used the "close as resolved" option on the dispute case, PayPal will inform the buyer's credit card issuer that the buyer already stated that they had no unresolved issues for that payment. 

What if a dispute was opened but the seller has a tracking number showing that the item was delivered?
If a buyer opens a non-receipt dispute against a payment made to you and you have online tracking for this item, you can provide your tracking number to the buyer by clicking on the "Add tracking number" link on the Dispute Details page. Another option is that you can escalate the dispute into a claim and provide PayPal with your tracking number via the process that is available in the Resolution Center.