Disputes and claims

(only applicable for the collecting model)

If something goes wrong with an order, a customer may open a case. Common types of cases are disputes and claims. All cases result in a temporary hold on transaction funds, so the best approach is to respond quickly.

There are two situations that we will describe here:
• Resolving a dispute
• Resolving a claim

Resolving a dispute

When a dispute is filed, we allow time for you to work with the customer to resolve the issue in a positive way. It’s best to respond to the dispute with your customer as soon as possible before it turns into a claim. In situations where the seller doesn’t respond quickly, customers typically escalate their dispute to a claim after about 4 days. However, a dispute can be escalated to a claim within 20 days from when it is filed.

Notification and login

First, we'll send an email to let you know you've received a dispute and place a temporary hold on the transaction funds. Your first step will be to click on the link in the email to login the Buckaroo Plaza or go to disputes, and navigate to PayPal.

Find your case

Click on the right dispute in the list of cases.

Respond

Respond to your customer with an explanation of what happened and give suggestions on how to resolve it. We recommend you respond as quickly as possible, as delaying makes it more likely the customer will escalate the dispute to a claim.

Here are tips for responding to your dispute based on the issue:

Item not received

For this type of case, you will need to share any relevant information and explain how you delivered the item or service.

• If you’re selling tangible goods and you haven’t shipped the order, share an explanation of why it hasn’t been shipped and offer a refund if necessary. If you shipped the order, share the shipping receipt or online tracking order with your customer. Inform the customer of the expected delivery times so they know when they may receive it from the courier.
• If you’re selling intangible goods, it is important to ensure you keep full documentation of the delivery of service, such as proof of download or email receipts.

Significantly not as described

For this type of case, you will need to inform the customer that the item or service provided is in line with what was promised to them before payment. Communicate or respond back with how you had accurately described the product or service and ensure you respond to the case with relevant details.

After responding, you can work together with the customer on a resolution and the customer may close the case. If you can’t reach a resolution, either of you can escalate the case to a claim.

Resolving a claim

If a customer files a claim with PayPal or a dispute is escalated to a claim, then PayPal steps in to review the details and determine a solution.

You will be asked to provide information and evidence based on the type of issue that led to the claim:

• For an item not received claims: you will need to prove that the item and service were delivered to your customer.
• For a significantly not as described claim: you will need to prove that the item or service provided is in line with the item or service promised to the customer before payment.
• For an unauthorized transaction claim: if you are eligible for Seller Protection, you will need to prove that you have fulfilled the transaction and incurred a loss.

Here are just some examples of the details PayPal may ask you to provide:

• Proof of shipment or delivery - like a third-party shipping receipt, online tracking number, or signature confirmation. Ensure the shipping receipt matches your customer’s address in the transaction details.
• Proof of replacement delivery or refund - the customer received their order but claimed there was an issue with it.
• A signed contract or other proof that services were provided.
• Proof of download if you sold a digital product.
• Proof of fulfillment if you sold other intangible goods, such as a digital receipt.

Make sure you respond to your customer as soon as possible. Although you generally have up to 10 days to respond, PayPal may communicate a different timeline by which you need to take action. You will need to provide all the information requested so they can work towards the best outcome for your eligible claim.

How to appeal a claim?

If a claim is decided in favor of the customer, you may be able to appeal it. The decision could be reversed if the item was returned to you in a different condition as the customer first received it, the item wasn’t returned, or the wrong item was returned.

Go to the connected closed case, select case details, and click on the appeal link. After you file your appeal, we may ask you for documentation or to fill out a declaration. Then PayPal will have a representative review your claim. If an appeal is granted, you’ll be reimbursed for the eligible transaction.

How do I escalate a PayPal dispute to a claim?

In a Purchase Protection (Item not received or significantly not as described) dispute, you can exchange messages with the other party in the Buckaroo Plaza and try to solve the problem.

If you’re unable to settle the dispute, you can escalate it to a claim. To escalate a dispute, PayPal often requires that at least 7 days have passed since the payment date.

By escalating a dispute to a claim, you’re asking PayPal to investigate and decide the outcome. A dispute will automatically close after 20 days unless it’s been escalated. Closed disputes cannot be reopened or escalated to a claim.

Here's how to escalate a dispute to a claim:
• Search for the relevant dispute that you want to escalate
• Click below in the screen Escalate issue to PayPal
• Add any relevant information for escalating the dispute and click Submit