All that you can do, at this point, is make an agreement with you and the customer. If neither of you can make an agreement, the dispute can be escalated to a Claim. Once the dispute becomes a claim, the funds for the transaction will be on hold. Then PayPal will investigate and make a ruling.
When buyers and sellers can’t come to an agreement, PayPal can help them arrive at an agreeable solution. Once a buyer initiates the dispute resolution process, PayPal will hold the transaction’s money until the dispute is resolved. If the buyer and seller can’t reach an agreement, the dispute can be escalated to a claim. At that point, PayPal will step in to determine the issue’s outcome.
Here’s how it works:
Step 1: Dispute notification - PayPal will notify you by email if a buyer opens a dispute. Then they will place a temporary hold on all funds in the transaction.
Step 2: Your response - You will need to review the dispute and reply with your explanation of what happened. Respond quickly, and include suggestions on how to resolve the dispute. If the buyer claims a purchase was made without their consent, review the claim and provide a response within 7 days. If you haven’t shipped the order yet, you can simply refund the payment and show us proof (or explain why you haven’t shipped). If you've shipped the order, provide us with a copy of your shipping receipt or online tracking number. Make sure the address on the shipping receipt matches the customer’s address listed on the Transaction Details page.
Step 3: Working it out - Once a dispute has been opened, you and your buyer have 20 days to come up with a resolution. In most cases, this is all that’s needed. The buyer closes the dispute once you’ve worked things out. However, when disputes can’t be resolved, either party can escalate the dispute to a claim.
For Claims:
Buyer's have 20 days to file a claim once a dispute has been started. PayPal will ask the seller for the following information if the buyer files a claim against the seller:
- A third party shipping receipt, tracking number, or signature confirmation to prove that an item was delivered
- Proof that you delivered a replacement or issued a refund if the buyer received their order, but there was a problem with it
- A signed contract or other proof to show that services were provided
- If you sold a digital good, we may request evidence that the buyer downloaded your product
Filed claims are time sensitive. Meaning, don't wait until the last minute to provide your information or you might lose the claim. When a claim’s decision is reached in favor of the buyer, the seller may be able to appeal it. The decision could be reversed in the event of one of the following:
- The item is returned to the seller, but not in the same condition as the buyer first received it
- No item was returned to the seller at all – just an empty box
- The wrong item was returned to seller
To file an appeal:
You can file an appeal by just doing the following:
- Log in to your account at PayPal.com from your computer
- Go to the Resolution Center - this is usually the link that's in the "More about your account" section near the bottom of the page and above "See how much you can send with PayPal" link.
- Select “Closed Cases.” It's possible that it might be in a drop-down menu.
- Click the “Appeal” button next to the case.
How to resolve disputes, what the steps are for disputes, and tips on communication can be found at https://www.paypal.com/us/webapps/mpp/security/resolve-disputes. PayPal's guide on how to avoid disputes and chargebacks can be found at https://www.paypal.com/us/webapps/mpp/security/prevent-fraudulent-orders. Here's another link on how to avoid fake email address's and/or orders at https://www.paypal.com/us/webapps/mpp/security/common-scams.
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