How does PayPal for Marketplaces manage disputes?
When something goes wrong with a customer's order, the customer can file a case with PayPal or ask his or her bank or credit card company to reverse a charge. When a customer disputes your charge, you can provide evidence to show that the charge is valid. To do so, or to appeal a dispute, you can submit a proof of delivery or proof of refund document or notes.
PayPal provides different options for dispute management and resolution, depending on which type of marketplace solution (Connected path or Managed path) is in place.
Dispute handling for Connected path solutions
PayPal works directly with merchants to investigate disputes and make final decisions regarding each case. The marketplace partner can choose to be informed about disputes while letting merchants handle their own disputes via PayPal's Resolution Center, or can actively manage disputes on merchants' behalf.
If you as the partner opt to manage disputes for your merchants, you must get the merchants' permission when you onboard them. You'll then receive dispute notifications and case details from PayPal, and you'll be responsible for responding to disputes in a timely manner with relevant information.
Dispute handling for Managed path solutions
In Managed path marketplaces, the marketplace partner always manages the dispute handling process and is expected to provide timely responses.
Getting dispute details
To get a list of disputes and related details from PayPal, you make the following call to the Disputes API:
When PayPal replies with dispute details, the response will contain links that enable you to look up individual dispute details.
To provide evidence to PayPal, such as a proof of delivery document, you make POST requests to the Disputes API:
Accepting a claim
When you accept a claim for a dispute, the dispute closes in the customer's favor and you issue a refund from your merchant's loss account. Here's the API call to accept a claim:
Appealing a dispute
You can appeal a lost dispute by making a POST call to the Disputes API, as follows:
In the call, you pass counterevidence that supports your appeal, such as a tracking number that indicates shipment. You can also upload other documents that support your side of the dispute.
Disputes Integration Guide
Customer Disputes API Reference