PayPal now promotes disputes at the checkout receives $20 per dispute, causing more disputes.

jubez
Contributor
Contributor

PayPal is now promoting disputes at the checkout, they receive $20 for each dispute, now I get disputes when a customer just wants to add or remove an item. I never had disputes before, now I am getting multiple disputes per week. PayPal should encourage the customer to contact the seller first to make changes to an order. My customers are telling me that PayPal encourages them to open a dispute to make changes to an invoice when they finalize the order. This seems shady to me. Also the funds are held for over a week and I can not refund partial amounts or ship.

Login to Me Too
5 REPLIES 5

kernowlass
Esteemed Advisor
Esteemed Advisor

@jubez 

 

Paypal does not charge for any Paypal dispute.

Any $20 fee is charged if the buyer opens a chargeback directly via their card issuer. In that case the card issuer makes any decisions and the card issuer charges their processing fee. 


Advice is voluntary.
Kudos / Solution appreciated.
Login to Me Too

jubez
Contributor
Contributor

They do charge $20 on disputes with or without chargeback, and I was charged, it was not a chargeback. The dispute was made 2 minutes after the order was placed, there wasn't even time for them to create a chargeback through a credit card. See their policy.
https://www.paypal.com/ca/smarthelp/article/what-is-the-PayPal-Dispute-Fee-and-why-was-I-charged-one...

PayPal charges a Dispute Fee to manage the dispute resolution process on transactions that were completed by a buyer with a PayPal account or a buyer using PayPal Checkout as a Guest. This Dispute Fee applies to such transactions both when the buyer files a claim directly with PayPal and when they file through a chargeback with their card issuer or a reversal with their bank.
Dispute-Charge.jpg

Login to Me Too

kernowlass
Esteemed Advisor
Esteemed Advisor

@jubez 

 

Yep that's for guest checkout payments where someone does not log into a paypal account to pay.

So they have paid via a card.


Advice is voluntary.
Kudos / Solution appreciated.
Login to Me Too

jubez
Contributor
Contributor

If that is the case though, they should not be promoting disputes to make a change to an invoice / order that was just placed, they should tell the customer to contact the seller to make changes to the invoice. I can't make any changes when the funds are frozen for over a week and it won't let me make a partial refund. My customers tell me that PayPal is directing them to a dispute when they just want to change the invoice. It is forcing me to cancel the orders and make a complete refund, then the customer has to reorder, when I could have simply made the changes and refunded or charged the difference. It' is very frustrating, and has never happened before in over the 16 years I have been selling with PayPal. Why am I just now seeing multiple disputes per week (to change the invoice immediately after the order), when I haven't had any at all for many years? I used to have customers just email me to make changes, so PayPal is promoting disputes in some way now.

Login to Me Too

sharpiemarker
Esteemed Advisor
Esteemed Advisor

@jubez 

 

Then just find any/all opportunity to encourage your customers to contact you for customer service if they need to change orders, etc. 

 

There is a dispute fee however there are certain situations where the fee doesn’t apply. Read the dispute fee documentation in full (scroll to Dispute fees section).

 

Better yet, change the way you have PayPal process your payments like using authorization and capture method with PayPal Checkout integration. This will give flexibility on when you actually receive payment.


Kudos & Solved are greatly appreciated. 🙂
Login to Me Too

Haven't Found your Answer?

It happens. Hit the "Login to Ask the community" button to create a question for the PayPal community.