When a customer opens a payment-related case, the most important thing is to understand what type of case it is and who controls the outcome. PayPal disputes, claims, chargebacks, and bank reversals are related, but they do not work the same way.
Here are the three main ways buyers can file complaints:
- Dispute or claim: the buyer opens a case through PayPal's Resolution Center.
- Chargeback: the buyer asks their card issuer to reverse the transaction.
- Bank reversal: the buyer asks their bank to reverse the payment.
When a case is opened, funds may be placed on hold while the issue is reviewed.
Quick case summary
- Dispute: initiated by the buyer, handled inside PayPal, usually no processing fee.
- Claim: an escalated PayPal dispute, still handled by PayPal.
- Chargeback: initiated by the buyer through their card issuer, usually includes a processing fee.
- Bank reversal: initiated by the buyer through their bank.
These cases usually involve one or more of the following issues:
- Item Not Received (INR)
- Significantly Not As Described (SNAD)
- Unauthorized Transaction
How should sellers respond?
- Open the case as soon as you are notified.
- Identify the type of complaint and its deadline.
- Gather the relevant order evidence.
- Respond clearly and professionally.
- Provide every document the reviewing party requests.
Useful evidence often includes:
- Tracking information
- Proof of delivery
- Order records
- Product descriptions and photos
- Customer communication history
- Return and refund policy acknowledgment where available
How can sellers reduce future cases?
- Publish accurate product descriptions.
- Use clear photos from multiple angles.
- Ship on time and provide valid tracking information.
- Keep customer support contact information visible.
- Use a PayPal Customer Service Message to encourage direct contact before escalation.
One of the most useful ways to support dispute prevention is keeping PayPal updated with valid order tracking. That is one reason many merchants automate the process with a tool such as Paltrack.
Related reading:
A Step-by-Step Guide to Winning an Item Not Received PayPal Dispute