Dispute resolution process

Whether it’s a simple misunderstanding or a human error, sometimes there’s a problem with an order. It’s just part of doing business. When this happens, buyers may open a dispute with us, or ask their credit card issuer to reverse the charge (a “chargeback”).


In most cases, the easiest way to settle a dispute is for buyers and sellers to connect, figure out what happened, and work together to solve it. When this happens, usually no holds are placed on accounts, and customers are kept happy.

However, when buyers and sellers can’t come to an agreement, PayPal Dispute Resolution helps them arrive at a solution. We make it easy for buyers and sellers to quickly and efficiently track, manage, and resolve disputes.

Once a buyer begins the dispute resolution process, we put a hold on that transaction’s funds until things are resolved. If the Buyer and Seller can’t reach an agreement, the dispute can be escalated to a Claim. Then we’ll investigate and make a ruling.

If you’re notified that a customer has opened a dispute or requested a chargeback, read our guide to Resolving Disputes, Claims, and Chargebacks to learn what to do next.

You can also read our guide to Avoiding Disputes and Chargebacks to help prevent them from happening in the first place.