PayPal chargeback

PayPal chargebacks are one of the most common problems associated with transactions on retail and eCommerce websites where PayPal is used as the payment processor. PayPal chargebacks happen when a buyer contacts their bank and files a dispute on a transaction that has already cleared. In most cases, this occurs after the goods have already been dispatched, which is very bad for a merchant. There are several proven methods of preventing PayPal chargebacks and dealing with them when the situation occurs. In this article, we will walk you through how to prevent this from happening and how best to deal with it if the situation occurs.

Preventing the Problem

First, always provide a means of contact on your eCommerce site. Usually, buyers don't resort to disputes or chargebacks if they are able to talk to the seller directly about their problems. So, one of the best ways of avoiding it is to provide either phone number or an email address prominently on your website. Answer questions from consumers promptly. Always respond to all inquiries as quickly and professionally as possible.

Understanding your buyer’s problems is important. When communicating with your buyers, listening patiently to what they have to say is also a great way of preventing dispute. From experience, most disputes are just as a result of miscommunication between buyers and sellers. Another good practice is to make your return policy easy to find on your website. Making your return and refund policies clear, bold, and easy to find on your website is also another way of reducing transaction disputes. All of these steps will go a long way in preventing PayPal chargebacks.

Suggest PayPal Dispute Resolution

It is always better to use the PayPal resolution center than the credit card company for dispute resolutions. More often than not, consumers will file disputes with their bank without first contacting the merchant directly. On the rare occasion that a buyer tells the merchant they want to file a dispute with the issuer of their credit card, merchants should always suggest they instead open a dispute in the PayPal resolution center. This will provide an opportunity to work things out mutually and peacefully between buyer and seller.


Merchants should stay positive and constructive. Just telling a buyer that they want to find a resolution can go a long way in resolving the matter. Usually, consumers want resolutions, too. Constructive conversation between sellers and buyers helps a lot in finding solutions to the problem. Save all transaction records. PayPal will contact the merchant when a dispute is filed, and it will be beneficial to have those records in hand. Always respond quickly and ensure all transaction records are provided in the email, or inform PayPal they are being sent. PayPal chargebacks can happen to anyone running an eCommerce website using PayPal as a payment processor, but chargebacks are preventable and/or reversible if the correct action is taken.