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Understanding Chargebacks
Protection Tips for Sellers

Protection for Sellers


A Wealth of Protection for Our Sellers

By utilizing the very latest in secure technology and employing a large team of experts in all areas of online safety, PayPal continues to be a leader in safe online payments around the world.

Read about:
PayPal vs. the Competition | Prevention | Action and Resolution

PayPal vs. the Competition

PayPal protects sellers in ways that many other financial institutions don't. For instance credit card companies often charge for their fraud prevention tools, but at PayPal you'll find the same tools free. PayPal's fraud experts work behind the scenes, monitoring activity and possible fraud indicators to help ensure an extremely safe network.

Should any suspicious activity occur, PayPal will either alert you by email or by a representative calling you. But PayPal doesn't stop there. We help you fight fraudulent chargebacks, too. Credit card companies frequently put buyers' needs before merchants' needs. That means chargeback disputes are often an uphill battle for sellers. PayPal is equally concerned about both its buyers and sellers. That's why, should a buyer file a dispute, we will help act as a mediator between both parties often resolving the situation before a chargeback is filed. If this fails and the buyer files a chargeback, PayPal will assist you in fighting fraudulent chargebacks. In these ways, PayPal offers a comprehensive level of protection for sellers.

Protection typeMost merchant accountsPayPal
AVS and CVV2 checksXX
Fraud prevention toolsXX
Buyers' financial information not shared with sellerX
Transaction screeningX
Dispute resolution assistance, even for low-volume sellersX
Chargeback fighting teamX
Qualified chargebacks covered X


State-of-the-Art Technology
You can count on PayPal's technology to help keep your transactions and financial information safe and private. By using advanced encryption methods available and constantly improving on our existing technology, PayPal has built its reputation as a leader in privacy and identity protection. In addition, PayPal's highly sophisticated fraud models alert us to suspicious account activity and our dedicated anti-fraud teams are trained to immediately respond.

PayPal also provides:
    The Anti-Fraud Team
    The PayPal anti-fraud team works 24 hours, 7 days a week to help keep your sensitive information private. Using sophisticated risk models and advanced technology, the team is able to detect and often predict suspicious activity to help eliminate identity theft. When appropriate, they even call customers to verify that all transactions were valid. The anti-fraud team's sole job is to make every PayPal transaction as safe and seamless as possible.

    More ways PayPal decreases fraud risk:
    • Cooperation and shared investigations with law enforcement agencies
    • Educational resources, including how to prevent chargebacks, protecting yourself against identity theft, and seller safety tips
    Action and Resolution

    The Resolution Center
    PayPal's Resolution Center facilitates fair and speedy resolutions should any dispute occur between a buyer and seller. A dedicated team of specialists will help you resolve disputes before a chargeback is filed, free of charge. Should dispute resolution fail and a fraudulent chargeback is filed, PayPal will gather the information concerning the relevant transaction and provide you with assistance to fight the chargeback

    You can also track PayPal's progress of a dispute at the online Resolution Center on the PayPal website. And the Resolution Center's online submission feature is particularly convenient if PayPal asks you to submit evidence to help win your case.

    No seller wants to be caught in a buyer dispute, but if it does happen, PayPal will provide you with support in trying to solve the dispute.

    The Resolution Team
    If a buyer files a dispute with PayPal through the online Resolution Center, our Resolution Team will review and help both buyer and seller work toward a resolution so that the buyer does not file a chargeback. In many cases, our team's mediation expertise can resolve a dispute quickly and fairly so that both parties feel satisfied. PayPal is the only online financial service that provides arbitration free of charge.

    If attempts at resolving the dispute fail and the buyer decides to file a chargeback against you, PayPal is there to help. Our specialized team will review your case and offer you support to fight fraudulent chargebacks. PayPal will ask you for information regarding the transaction and use it as evidence when disputing the chargeback with the credit card company.

    In addition to our Resolution Team, PayPal also provides an online Resolution Center so you can monitor PayPal's progress as we work to resolve the chargeback.