PayPal Chargebacks: What Every Seller Needs to Know

PayPal makes online payments easy. But when disputes happen, it can hit merchants hard—fast.

At Dispute.com, we break it down for you and give you the tools to fight back.

🔄 Disputes vs. Chargebacks: What’s the Difference?

• PayPal Dispute: Handled in PayPal’s Resolution Center. Buyers and sellers talk it out. No fee if resolved here.
• PayPal Claim: Escalated dispute. PayPal decides who wins.
• Chargeback: Buyer contacts their bank directly. Money pulled from your account. Fees apply. It’s serious.

💸 PayPal Chargeback Fees

• Standard fee: $20 per chargeback (in USD).
• If you exceed 1.5% dispute rate across 100+ transactions? $30 per dispute.
• PayPal doesn’t refund these fees—even if you win.

⏰ Time Limits

• Buyers typically have 120 days to file a chargeback.
• You’ve got 10 days to respond, or you lose by default.
• Total resolution time? Weeks or even months.

🔐 Protection Programs

• Purchase Protection: Helps buyers get refunds.
• Chargeback Protection: Helps shield you from certain fraud cases.
• Seller Protection: Covers unauthorized or “item not received” claims—if your transaction qualifies.

⚠️ Common Scams Targeting Merchants

• Overpayment scams
• Shipping fraud
• Fake buyer accounts
• Friendly fraud (customer gets product, then disputes anyway)

🛡️ How to Prevent PayPal Chargebacks

• Use fraud tools: AVS, CVV, 3-D Secure
• Eliminate order/shipping errors
• Respond quickly in the Resolution Center
• Fight invalid chargebacks—don’t let friendly fraud slide

✅ The Bottom Line

PayPal offers some protections—but it’s far from bulletproof.

Want a real defense strategy? Dispute.com helps you fight chargebacks before they start, and win the ones that hit your inbox.

📞 Talk to our experts today. Let’s protect your revenue.