PayPal charges to merchants when customers raise dispute

[M0ITI]

I am thinking of using PayPal for collecting regular subscriptions, donations and payments for events from members.   We are a small 'membership' organisation and payments collected are always for one of the above purposes.  We are not a trader of goods.  Typical payments average no more than £50.00

All transactions are in UK Pounds.

Users wishing to make payments to us would be redirected to the relevant PayPal payment screen from our own website.

MY CONCERNS

Looking through PayPal's fees table, I am concerned that we may be charged a 'chargeback fee' if someone pays us money using their credit card and then, when they get their card statement, fail to recognise the transaction and enter a dispute - yep, this has actually happened.

So the crix of my question is :  under what circumstances to PayPal charge merchants for 'disputes' given the above circumstances and what are the actual fees.

Thanking the community in advance in anticipation of clarification.

[PayPal_JonK]

Hello @M0ITI,

Welcome to the PayPal Community! This is a great question. When a Chargeback happens, the amount of the chargeback is taken from PayPal. In addition, a settlement fee is applied for the cost of processing the chargeback. If you’re covered by Seller Protection, PayPal will cover you against the costs of both the chargeback and the settlement fee.

There may also be a Dispute Fee charged on Standard Disputes. Here's a Help Center article on How the dispute rate is calculated and how to avoid being charged a dispute fee.

I hope that clears up any confusion, good luck with your sales!

 - Jon K