How To Prevent Paypal Chargebacks? Step By Step Guide

Banking & Finance

Every merchant has a responsibility to prevent PayPal chargebacks from their customers because chargebacks can occasionally be unfavourable.

A chargeback is the procedure whereby a customer disputes a specific transaction with the card issuer directly in an effort to receive a cash refund.

Consequently, I’ll be demonstrating to you how to avoid PayPal Chargebacks in this article.


A PayPal Chargeback: What Is It?


The customer must dispute the transaction directly with the card issuer or the bank whenever there is a problem with a specific transaction in the business world.

The bank will be in charge of starting the chargeback process for the customer, which entails returning the money to the customer’s account.

Simply put, a PayPal chargeback is the process by which a user contests a charge that has been verified through PayPal.


One way to start a chargeback on PayPal is to get in touch with PayPal, which will then get in touch with the merchant in person and ask for some documents that will be used as evidence throughout the investigation.

The Best Way to Avoid Paypal Chargeback


You must give PayPal the appropriate information if you want to avoid PayPal chargebacks because PayPal acts as a go-between for the cardholder and the card issuer.

The following are methods for preventing PayPal chargebacks:

• Giving a thorough description of the product you wish to sell, which can be accomplished by listing all of its features and including photos and brief videos, will give the buyer a better understanding of what he or she is purchasing.

• Create a defined and clear terminology on your website or business platform regarding your refund policy, and place it in a location where your customers can easily see and understand it.

If necessary, make sure to authenticate the refund; you can do this by using the payment resolution center’s refund feature.

• Comply with the seller’s protection requirements; if you’re a merchant, you should think about complying with these requirements.


By guaranteeing the security of online transactions, the seller protection programme contributes to consumer confidence by preventing fraud-related trials and lowering chargeback disputes.

• Provide complete contact details so that customers can get in touch with you in the event of a problem rather than bringing a claim to the attention of the lending institution.

The Chargeback Procedure for PayPal


Once a user files a dispute regarding a specific transaction, an investigation into the transaction dispute will be conducted before the process of requesting a chargeback is started.

The length of the investigation varies depending on how serious the dispute is.

As a result, whenever you open a PayPal dispute, the following will happen.


1. When a customer requests a chargeback, PayPal notifies the merchant or seller, the person providing the service or selling the product.

2. As a result, the retailer will offer proof of the correspondence that took place between the retailer and the client. Depending on the type of business transaction that took place between the merchant and the customer, the documents that will be provided by the merchant must contain accurate information.

3. The document(s) are sent to the card issuer for additional review and processing; the cardholder will make the final decision.

Limit on Pay Pal Chargebacks


You will have up to 10 days to respond if you recently received notice from PayPal regarding a chargeback and provide the required supporting documentation.

After a buyer places an order, the buyer has up to 180 days or more to request a chargeback. While reviewing a customer dispute typically takes up to 75 days, it sometimes takes less time.

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