Manage Customer Concerns

Addressing customer concerns

In the unlikely event one of your customers opens a dispute, files a claim, or lodges a chargeback, we can help.

Addressing customer concerns

Improving customer satisfaction
Why do customers lodge disputes?
What’s chargeback?

Improving customer satisfaction

Communication is key when working to reduce the likelihood of claims, disputes, and chargebacks. You should:

  • Post items quickly and track the shipment. Send the tracking number to your customer.
  • Give realistic delivery dates – don’t over promise.
  • Be accurate with your item’s description.
  • Provide your contact details.
  • Respond to queries and issues quickly.
  • Show your returns policy.

Useful tips

Use the Customer Service Message to provide your contact details and shipping details. Customer will see them before submitting disputes or claims.

Update Customer Service Message

Why do customers lodge disputes?

Customers can open disputes to ask for your help to resolve a problem with a transaction. It could be that they haven’t received the item, or feel the item they received is significantly different to how you described it.

How a dispute becomes a claim

A customer files a dispute to start the conversation with you. If you can’t resolve the issue together, you or your customer can escalate it to a claim within 45 days of the transaction. PayPal will review the claim and decide on an outcome under the terms of our Buyer Protection Policy.

PayPal aims to resolve claims within 30 days but sometimes it takes a little longer. In making a decision, we’ll review the details of the issue and gather information from both of you – including your proof of shipment.

What’s chargeback?

A chargeback occurs if your customer asks their credit card issuer to reverse a transaction that’s already been approved and processed. They can usually file a chargeback up to 180 days after the expected delivery of the goods or services.

They could file one because:

  • An unauthorized payment was made with the customer’s card, e.g. a stolen card or fraud.
  • They didn’t receive the item.
  • The item is significantly different to how it was described.
  • There were errors processing the transaction, e.g. a duplicate charge.
  • They did not recognize the payment from their card statement.

Useful tips

Prevent losses by updating your name appears on customers’ Credit Card Statement, so they can remember where they shopped.

Update Card Statement Name

Contesting a chargeback

You’ll need to provide as much information as possible about the transaction, like:

  • Proof of shipment.
  • Proof of refund to the credit card or PayPal account.
  • Any correspondence you’ve had with the buyer.
  • Details of the item sent.

It usually takes about 75 days for a credit card issuer to determine the outcome of a chargeback. PayPal doesn’t control the outcome of this decision. We’ll hold the funds until a decision is made and then release them to the party the card issuer finds in favor of.

If you’ve resolved a PayPal dispute by issuing a refund and we subsequently receive a chargeback for that transaction, we’ll notify the credit card issuer that a refund has been issues and the dispute has been resolved. If you receive a credit for a claim for transactions under PayPal Seller Protection, you’re protected against chargebacks for unauthorised payments and eligible items not received.

More on chargeback guide