Managing customer concerns.
Customers raise disputes for many reasons. It could be that shipment takes longer than anticipated, the item wasn’t what they expected or they didn’t authorise the transaction. There are some easy ways to help avoid disputes on your sales and resolve them quickly when they arise.Sign Up Now
Set up a credit card statement name so customers can identify their purchase.
Provide clear information about your items and shipping, and make it easy to contact you.
Respond quickly to your customers so they know you’re willing to help.
Why disputes arise.
Generally, disputes arise because the transaction didn’t go to plan.
They didn’t receive the item.
Perhaps it’s on its way but they expected it sooner. Never over-promise on delivery dates. Let your customers know when you’ve shipped an item and, when you can, provide tracking details.
It’s not what they expected.
Your customer has received the item but it’s not what they expected. Perhaps it was damaged during shipment, doesn’t work, is missing parts or is just totally different. Always provide clear descriptions and photos when selling items.
They don’t recognise the charge.
It could be an unauthorised purchase due to identity or credit card theft, or perhaps the charge didn’t have your business name on it. Set up a credit card statement name to help avoid this.
How to avoid disputes.
Great customer service and clear communication helps limit your exposure to disputes.
When listing an item for sale, provide as much detail as possible. Include clear photos from different angles, measurements and weight, and materials and other details so they know exactly what they’re buying.
When you make a sale, ship the item quickly. Email your customers tracking numbers with links to where they can track shipment online and keep a copy of these details for your records. Give realistic delivery dates.
Set up your credit card statement name so that when the charge appears on their statement, they can easily identify what it’s for.
Clear contact information
Provide clear contact information on your website so customers don’t have to hunt down how to get in contact with you in case of a problem.
Return and refund policies
Publish your return and refund policies on your site. Keep in mind that some laws and card provider policies give buyers dispute rights, even if you have a no-return policy. If you refund a customer, do so from the Resolution Centre or transaction details page.
Suggest customers file a dispute through PayPal if there’s a problem so you can resolve the issue with them directly. Create a customer service message so they know what to expect if they do file a dispute.
Types of disputes.
There are 3 types of disputes that can be raised by customers if something goes wrong with a purchase.
A customer files a dispute through their PayPal account when they want to discuss the issue with you. You can exchange messages through our Resolution Centre until you come to an agreement and close the dispute.
If you cannot come to a mutual agreement on how to resolve the dispute, either you or your customer can escalate it to a claim in the Resolution Centre within 20 days. We’ll review the case and decide an outcome.
A customer reports a problem to their card provider to file a chargeback. We’ll work with the card provider to resolve it and ask you for information to support your case. The card provider’s decision is final.
Resolving disputes, claims and chargebacks.
We’ll email you if a customer files a dispute, claim or chargeback. Just make sure you respond within the indicated timeframes to ensure you don’t unnecessarily lose out.
If a claim or chargeback is filed against one of your transactions, log in to your account to provide any information we request, like proof of shipment. Once we’ve received all information from you and your customer, we’ll review the claim or work with the card provider to resolve the chargeback.
If the final decision rules in your favour, you’ll get to keep the money. If the decision is made in the favour of your customer, we may reverse the payment from your account if the transaction is not eligible for Seller Protection.
If a customer claims a purchase was made without their consent, log in to your account to review and respond to the claim within 7 days. We’ll investigate and help resolve the issue.
If you haven’t shipped the item yet, you can refund the payment in the Resolution Centre. If you’ve provided a refund another way, we’ll need you to provide proof of that refund. If you have shipped the item, submit proof of shipment and we’ll evaluate your eligibility for Seller Protection.
Proof of shipment or service delivery.
If a claim or chargeback is filed, we may ask you to provide proof that you’ve shipped the item or fulfilled the service.
At the very least, your documentation must include:
- The date the item was sent, and
- An official acceptance by the shipper, such as a postmark or online status. A status that shows the item was delivered is also acceptable.
It must also include either:
- The recipient’s delivery address, showing at least the state, city and suburb (or international equivalent), or
- A receipt from Australia Post showing at least the recipient’s suburb, city or postcode (or international equivalent).
- A copy of the shipping receipt or shipping label that includes the delivery address, or
- For Australia Post eParcel customers, a copy of the consignment information page which shows the delivery address and the online tracking code that can be used to confirm delivery, or
- A shipping code PayPal can use online to view the shipping status and delivery address. You can get this from TNT, DHL, FedEx, Skippy Post and other carriers, or
- A receipt issued by the carrier, signed by the recipient acknowledging delivery.
You’ll need to provide compelling evidence that the item was delivered or the service fulfilled. Compelling evidence is any evidence available to prove that your customer received the goods or services, or otherwise benefited from the transaction.
Compelling evidence could include a system record showing the date the item was sent and that it was either:
- Electronically sent to the recipient, or
- Received or accessed by the recipient.
- An extract of an online booking system for the issuance of tickets, or
- An internal system record showing the deployment or retrieval of a digital item.
Protecting your sales.
Where we can, we’ll protect your business from losses with PayPal Seller Protection. Seller Protection protects eligible transactions against unauthorised payments, transactions reversed due to suspicion of fraud and claims items weren’t received.Learn more about Seller Protection
Sign up for a business account and keep your business safer.Sign Up Now
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