Claims happen when a buyer complaint is escalated to PayPal or the buyer filed an unauthorized transaction. Learn why claims occur, how to respond to them, and what the claims process looks like.
If a buyer dispute can’t be resolved, either party can escalate it to a claim during the 20-day period. At this point, PayPal becomes directly involved and will make a decision using the information that’s provided. A buyer can also file a claim (without first initiating a dispute) if they feel their account has been used fraudulently. During the resolution process, we may ask either or both parties for more information via email.
Claims are based on three factors:
If you can’t resolve a dispute with a buyer, you may feel the need to escalate it to a claim. To do so:
If a claim has been logged, you’ll be notified via email. You’ll also see that a case is created in the Resolution Center.
To respond to a claim:
After you make a selection, follow the instructions. Keep in mind that once you upload the files, you won’t be able to view them again – you’ll just see a summary of the information you’ve submitted.
You can work to help prevent claims by following the same customer service tips we gave to help prevent disputes.
If a claim is filed, the seller is asked to respond within 10 days. If the seller doesn’t respond, the claim will automatically close in the buyer’s favor, and a full refund will be issued. If the seller does respond, PayPal will work to evaluate the information provided and determine the outcome of the claim. This process usually takes about 30 days, but more complex cases could take longer than 30 days.
Having a claim filed against you doesn’t necessarily mean you’ll be penalized. There are no automatic fees levied against you, and your seller feedback won’t automatically be affected. However, if a claim rate is too high or other indicators are trending negatively, your account could be reviewed, and reserves or limitations could be put in place. A temporary hold may automatically be placed on money when a claim is opened. This hold will stay in place while you work with the buyer to resolve the claim and will be released back to you if the claim is settled in your favor. For Item Not Received (INR) claims, if you provide the relevant information as outlined in the Seller Protection Policy, and the claim is decided in your favor, the money will be released to you. Once a claim has been filed, the best thing to do is promptly provide any requested information.
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