My buyer filed a dispute, claim, or chargeback, and the payment is on hold in my PayPal account. What should I do?

If a buyer files a dispute, claim, or chargeback against you, the funds will be held in your account and won’t be available for use or withdrawal, until the case is resolved. This ensures that there is money available if you need to refund your buyer.

You can use these funds to issue a refund anytime during the dispute from the Transaction Details page. If you send a full refund, the dispute is closed. If you offer a partial refund for less than the amount than the buyer requests, the buyer will have a chance to accept or deny your offer.

Once the dispute, claim, or chargeback is resolved, the remaining funds will be released. You can view the current status of an open dispute or claim in the Resolution Centre.

Learn more about how to resolve a dispute or claim with your buyer.