What is Chargeback Protection?
Chargeback Protection is an opt-in risk product that helps eligible merchants reduce the risk of fraudulent credit or debit card transactions. We’ll help protect your Advanced Credit and Debit Card transactions from or “item not received” chargebacks, and once you submit the info we need, we’ll waive the chargeback fee and remove the hold on the dispute amount. Read the Terms and Conditions for Chargeback Protection.
This feature is only available for business accounts with Advanced Credit and Debit Card checkout.
Which merchants are eligible for Chargeback Protection?
To be eligible for Chargeback Protection, a merchant must have a PayPal business account and have enabled Advanced Credit and Debit Card checkout.
How can a merchant apply for Chargeback Protection?
Merchants can apply for Chargeback Protection from within their PayPal account. Simply click on 'Manage Risk and Fraud' in the Payment Preferences section within Account Settings and select Chargeback Protection. Terms apply.
How does Chargeback Protection work?
We’ll help provide risk decision-making on all your Advanced Credit and Debit Card transactions and decline potentially fraudulent payments. If an approved transaction is later identified as fraudulent, it will be chargeback-protected once the info we need is submitted.
- We’ll monitor Advanced Credit and Debit Card checkout transactions
- We’ll review those transactions for risk of fraud
- We’ll waive any chargeback fees and remove the hold on the disputed amount if a transaction is later found to be “unauthorized” or “item not received” upon our review of the info requested from you.
How does a merchant end Chargeback Protection?
You can end Chargeback Protection anytime. There are no yearly caps on losses, no fixed duration, revenue requirements, or cancellation fees. Merchants simply need to click on “Manage Risk and Fraud” in the Payment Preferences section within Account Settings and select “No protections right now."
How much does Chargeback Protection cost?
Please review the PayPal Merchant Fees page for up-to-date fees.
*Fees are subject to change.
What info must a merchant provide in connection with an eligible chargeback dispute?
If a chargeback occurs, merchants must submit proof of shipment /delivery as requested by the Resolution Center to qualify for Chargeback Protection.
What types of transactions are eligible for Chargeback Protection?
Chargeback Protection applies to PayPal Commerce Platforms Advanced Credit and Debit Cards (ACDC) checkout. Exclusions apply.
What types of chargebacks are eligible under Chargeback Protection?
Chargeback Protection is only offered for “unauthorized” and “item not received” chargebacks. You must still respond to these chargeback disputes in the PayPal Resolution Center to get the benefits of Chargeback Protection.
What types of chargebacks are not eligible under Chargeback Protection?
All chargebacks other than “unauthorized” and “item not received”, such as “broken item”, “significantly not as described,” “refund not processed”, and “duplicate charge”, are not eligible for Chargeback Protection. You’re expected to respond as usual to these chargeback disputes in the PayPal Resolution Center.
What are the differences between Chargeback Protection and Fraud Protection?
| Chargeback Protection | Fraud Protection |
| Chargeback Protection is a built-in, risk decisioning tool available to eligible PayPal merchants for a fee. | Fraud Protection* is a built-in, fraud analysis tool provided to ACDC PayPal merchants at no rate. |
| PayPal uses risk models and analysis in real-time to accept or reject transactions based on their risk level. | Merchants set risk rules and filters within the Fraud Protection tool, determining which orders to accept or reject. |
| PayPal will waive any chargeback fees and will release the disputed amount to the merchant for any “unauthorized” or “item not received” chargebacks that may later occur upon receipt of the requested information from the merchant. | Merchants carry the liability for any chargebacks that may occur when using Fraud Protection. |
*When you sign up for Chargeback Protection, we’ll automatically disable Fraud Protection on your account. You’ll no longer have access to the Fraud Protection dashboard if you are enrolled in Chargeback Protection.