PayPal Cases: What are they and how to prevent them

Apr 15 2024 | PayPal Editorial Staff

On top of being inconvenient, cases can also be detrimental to the reputation and growth of your business. Read on to find out how you can prevent cases even before they arise.

As a business owner, managing customers’ expectations is part and parcel of running a successful venture. It’s crucial to keep your customers satisfied throughout their purchase journey. However, when an order goes wrong, customers may open a case and that can adversely affect your business.

What are the types of cases?

The types of cases that customers would usually file are: disputes, claims, and chargebacks. Disputes and claims are filed with PayPal whereas chargebacks are filed externally by customers directly with their card issuers.

Tip: You can view and manage any existing cases any time in the Resolution Center by logging in to your PayPal Business account.

How do I prevent them?

Understanding the common issues resulting in these cases can potentially help you prevent them down the road. Here are some common issues customers face:

Types of issues How do I prevent these issues?
  • Item Not Received
  • A customer pays for an item, but never receives it.
  • Provide realistic delivery dates with online tracking.
  • Consider purchasing insurance for high-value items.
  • Delay high-risk international shipping orders by 24 to 48 hours as scammers often request overnight shipping so they can resell merchandise as quickly as possible.
  • Ensure there is signed Proof of Delivery (POD) for transactions if it’s 34,000 PHP or more or its foreign currency equivalent provided in our User Agreement.
  • Avoid using customers’ shipping company as rerouted packages void Seller Protection coverage.
  • Choose a reputable dropshipper to avoid losses or set stringent vetting processes if you are acting as the dropshipper.
  • Be clear with your refund policy and issue refunds quickly.
  • Constantly update your listings for out-of-stock products and provide an estimated restock date.
  • Item Received Significantly Not as Described
  • A customer receives an item that’s considerably different than what is expected.
  • Provide clear images for items from several angles.
  • Manage customers’ expectations by describing items accurately and in detail.
  • Clearly and accurately disclose any defects or damages.
  • Answer queries promptly and clearly with a positive tone.
  • Provide proof of authenticity, if available.
  • Unauthorized Transaction
  • A purchase was made without the account holder’s consent.
  • Look for warning signs such as unusually large orders or shipping to a high-risk location.
  • Make your business name clear on invoices. This will help ensure customers recognize the charge.
  • Contact customers before you ship for chances to correct any errors.


What are the extra steps I can take?

All cases can result in a temporary hold on transaction funds, so it is best to respond quickly. Informing your customers beforehand about common issues that they may face is essential in keeping them satisfied throughout their shopping journey.

Additionally, you can anticipate your customers’ needs and take preliminary steps as a seller to prevent cases altogether. An effective way to elevate your customer service and to prevent cases is by posting a Customer Service Message in the Resolution Center. You can inform your customers of any anticipated issues such as change in shipping fees or delayed deliveries.

Create Customer Service Message

More tips on preventing potential cases

  • Provide contact information
    • Rather than disputing the transaction, give your customers an option to address the issue with you by providing details such as phone number or email address.

  • Be responsive
    • Be mindful to respond to all reasonable inquiries quickly and professionally. The waiting game makes issues worse during the customer journey.

  • Provide a clear return policy
    • Ensure that your return and refund policies are easy to find and understand. They should clearly describe the steps your customers should follow.

  • Suggest dispute resolution
    • Advise your customers to open a case in the PayPal Resolution Center if they decide to file a chargeback. This will give you and your customers the chance to address the issue amicably.

Key takeaway

Knowing how to manage customers’ expectations and providing great customer service through preliminary actions can help catapult your business further in this digital landscape. The PayPal Commerce Platform is all about helping you throughout your venture by providing security and convenience for your operations.

The contents of this site are provided for informational purposes only. The information in this article does not constitute legal, financial, IT, business or investment advice of any kind and is not a substitute for any professional advice. You should always obtain independent, professional accounting, financial, IT and legal advice before making any business decision.

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