PayPal takes money during open dispute?

[emh1969]

Yesterday someone opened a dispute against me (an illegitimate one I might add). I responded as soon as possible. The dispute is currently listed as open and waiting response from the buyer. Today I logged onto my PayPal account and it shows a negative balance for the same amount as the disputed transaction.

I've never had a dispute before so can someone explain to me what is going on? Why would PayPal take money from me for an open dispute? The dispute hasn't been resolved, nor has it been escalated to a case.

Thanks!

Ed <Removed>

[PayPal_Ayesha]

Hello @emh1969,

Thank you for posting on PayPal Community Forum!

I understand that you're worried about the dispute on your PayPal account. The dispute process is an opportunity to resolve issues between the seller and the buyer. It's in a seller's best interest to work with the customer to resolve the dispute. In a dispute, you can exchange messages in your Resolution Center to try to solve the problem. If you’re unable to settle the dispute, the buyer may escalate it to a claim. By escalating it to a claim, the buyer is asking PayPal to investigate and decide the outcome. A dispute will automatically close after 20 days unless it’s been escalated. If there are any questions about the dispute, you can contact support by clicking 'Contact' at the bottom of any PayPal page. 

I hope this helps,

Ayesha