How to Dispute a PayPal Transaction

Paypal transaction disputes are usually -- but not always -- resolved online.
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Paypal's convenience makes it a top choice for buyers, sellers and companies paying for certain services. Inevitably, disputes arise between buyers and sellers. Paypal offers several "dispute resolution tools" that clients can use to solve the problem. If you dispute a transaction with Paypal, the company initially tries to bring you and the other party to an amicable agreement.


Filing a Dispute

Paypal starts the conversation between buyer and seller when one party files a dispute through the resolution center. The dispute must be filed within 180 days of the purchase or transaction. At the resolution center, select "Dispute Transaction," then identify the transaction in question. Once you file a dispute, you and the other party have 20 days to work out a settlement on your own.


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Buyer and Seller Resolution

Paypal encourages buyers and sellers with disputes to attempt to work the issue out between themselves before filing a formal complaint. It's possible that a problem will arise from miscommunication rather than incompetence or deliberate fraud. Paypal urges sellers to post messages on its Resolution Center if they know issues might arise. A seller can post a message regarding possible shipment delays due to weather or any problem temporarily affecting sales. Both buyer and seller should approach the issue in a constructive manner, without resorting to harsh language or lack of respect.


Filing a Claim

If you can't come to a resolution with the other party, you can file a formal claim. Once that's done, Paypal makes the final decision regarding fault. Start the process within that 20-day period after filing the dispute. Again, go to the Resolution Center, and select "File a Claim." You must include the reason the situation has escalated from a dispute to a claim. After reviewing the case, Paypal makes a decision within 30 days.


The Appeals Process

A seller can appeal a claim if Paypal finds in the buyer's favor if one of three events occur. These include the buyer returning an incorrect item, returning an empty box or returning the correct item but not in the same condition in which it was shipped to the buyer. File an appeal in the Resolution Center by selecting "closed cases" from the menu and then choosing "appeal." Paypal might require additional information, including more documentation, or submission of an affidavit or police report. If Paypal approves your appeal, you will be reimbursed in the amount of transaction.



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