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How To Resolve Paypal Disputes

paypal dispute
March 26th, 2015

When you have online transactions through Paypal without ever meeting with your buyers or sellers personally, it’s inevitable that problems and disputes are going to come up. Here are some tips to help you resolve your PayPal disputes.

Tips for Buyers

As a buyer, you’re taking a risk because you’re sending money before you get the product delivered to you. If there’s a problem, here are a few tips to help you out:

You have 45 days from the date you made the payment to create a PayPal dispute process. Perhaps you can spend the first few weeks of this period to contact the seller directly to inform them of your problem. Maybe they can satisfy your demands, such as deliver or replace the goods or give you a refund.

If the dispute isn’t resolved to your satisfaction, then within that 45-day period you have to dispute the transaction through PayPal. You log in to your PayPal account, get the date of the transaction or the transaction ID, and the go to the resolution center to enter your complaint.

PayPal then contacts the seller and begins the process of resolving the problem. Just respond to all the communications sent to you, and only close the dispute if it’s resolved to your satisfaction.

If the dispute is not resolved, then you have 20 days to escalate the dispute to a claim. PayPal then asks for more info and you need to provide all the necessary details. You then wait for PayPal to pass judgment.

In general, PayPal tends to side with buyers, but it’s always a case to case basis.

Tips for Sellers

Merchants like you must be sick by now with PayPal’s tendency to side with buyers almost all the time. Here are some ways to lessen your headaches:

Your first order of business is to prevent disputes from coming up in the first place. So when you sell items online, provide accurate descriptions, photos, and specs of what you’re selling, along with a tutorial on proper use and maintenance. Follow consumer laws on returns and warranties, and perhaps you should have proper customer support to tackle complaints.

Avoid high risk transactions. That means you don’t accept payments from multiple or different PayPal accounts. The billing and shipping address should be the same, and if the seller asks for another delivery address via email, then you should ask them to change the address they use on PayPal and resubmit their PayPal payment with the new address.

Use a delivery service that offers a tracking number, and then mail the full URL tracking link to the buyer so they can monitor the progress and they don’t make premature claims that you failed to deliver. This service offers proof of delivery on your part.

Additional proofs that can help your cause include a copy of the buyer’s signature confirming receipt. And if you ever offered a refund or replacement item, you need to have proof of the refund or of the shipment of the replacement.

Work with the PayPal Dispute Resolution department. PayPal will mediate, and you need to provide whatever documentation they ask for.

Good luck to you as a seller. Things may not fall your way when it comes to PayPal dispute resolution, but that’s the price of doing business online.


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