What is the chargeback fee?

The chargeback process is initiated outside of PayPal between the card issuer and the cardholder. When a customer files a chargeback with their credit card issuer, it means that they’re disputing a charge and asking the card issuer for a refund.

In a chargeback dispute, the decision is made by the card issuer. As there are costs associated with processing chargebacks, PayPal is charged a fee for each chargeback. A fee is assessed to cover our cost of processing the chargeback. This is a fee we incur from the credit card company that is passed along to you at a reduced rate. Please visit our Fees page for more information.  

If the transaction isn’t covered by Seller Protection, we'll debit the amount of the reversed transaction and the chargeback fee from your PayPal account. 

Please note that the fee is waived if all requirements of PayPal Seller Protection Policy have been met.

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