Payment Methods - PayPal Fullservice
1. PayPal Fullservice Dispute Process
PayPal disputes
A PayPal dispute arises when a consumer files a complaint about a transaction directly through the PayPal Resolution Center. This can happen within 180 days of the purchase date. In the event of a dispute, the burden of proof lies with you as the merchant.
When a consumer opens a PayPal dispute, you will receive a notification at the email address linked to your Pay. account. For the duration of the dispute, the payout of the PayPal transaction is blocked until a final decision has been made.
Options upon receiving a dispute
As a merchant, you have two options after receiving a PayPal dispute:
Option A: Accept the dispute
If you decide to accept the dispute, the amount is immediately refunded to the consumer and the temporary block is permanently deducted from your account balance. In this case, there is no longer any possibility to contest the dispute.
Option B: Contest the dispute (provide evidence)
If you disagree with the dispute, you can contest it by providing evidence. Make sure the evidence is complete, carefully prepared, and convincing. Below you will find the required evidence per case type:
Required evidence per dispute type
| Case Type | Required supporting documents |
|---|---|
| Item Not Received (INR) – Physical Goods | Proof of delivery Description of delivered goods or services Shipping tracking information: shipping date, status, delivery date, delivery address Track & Trace must be verifiable online and demonstrate delivery to the address provided by the customer. If the transaction amount exceeds a certain threshold, a signature upon delivery is required. If online tracking does not show delivery, a delivery confirmation by the carrier is required. |
| Item Not Received (INR) – Digital Goods | The evidence must be clearly linkable to the buyer (name, address, email address, PayPal transaction ID, or other unique identifier). The evidence must demonstrate that the transaction was executed and that the customer used the service or had the opportunity to do so, in accordance with the terms and conditions. The evidence must originate from existing systems or standard procedures and may not have been created ad-hoc. For digital downloads: date and time of download or delivery and any additional evidence of use or access after the transaction. |
| Merchandise Not As Described (SNAD) | Description of the goods or services delivered and original product listing (URL, product description, etc.). Clear details regarding the customer's problem (damage, returned item, etc.) and convincing evidence that the claim is incorrect or an explanation of why the delivered item matches the description. For digital goods/services: proof of delivery and completion of the service as described at the time of sale. |
| Billing - Credit not Processed (CNP) | Proof that the customer was refunded via PayPal or another method. Store policy regarding cancellation/returns stating that the customer was not entitled to a refund. Proof that the transaction was not cancelled or the item was not returned. |
| Duplicate Charge (DUP) | Proof that various items were shipped to the buyer. Proof that the debits related to different products/services. Proof of refund or credit voucher. |
| Incorrect Transaction Amount (ITA) | Receipt or invoice with a detailed overview of costs. Proof of refund or credit voucher. |
| Paid By Other Means (PBOM) | Proof that multiple items were shipped to the buyer. Proof that the debits related to different products/services. Proof of refund or credit voucher. |
| Canceled Recurring Billing (CRB) | Copy of the invoice agreement and/or cancellation terms. Proof that the buyer was notified in advance of changes to the invoice agreement (in EMEA, this is required at least 4 weeks in advance). Proof of refund or credit note. |
| Unauthorized Transaction / Fraud (ATO) | Proof of shipment or delivery. Description of the goods or services delivered. Communication with the customer: if partial services have been delivered, a confirmation from the customer with signature or initials regarding services already delivered and outstanding services. |
Assessment by PayPal
After receiving the evidence, PayPal usually assesses the dispute within 10 days. The outcome can be as follows:
- Ruling in favor of the merchant: The temporary block is lifted and the amount is released.
- Ruling in favor of the consumer: The temporary block is released and the amount is deducted from your account balance.
Escalation to Claim
If no agreement is reached within 20 days, you can escalate the dispute to a claim. In this case, PayPal makes a final decision based on the evidence provided. This outcome is binding for both parties.
Appeal
If PayPal rules against you as the merchant, you can appeal within 10 calendar days after the claim is closed.
Note: This is only possible if you provided evidence during the claim phase. PayPal decides on the appeal within 7 business days. If the appeal is successful, the amount will still be credited to your merchant account.