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How To Win a PayPal Dispute or Claim – For Sellers (2021)

By March 19, 2021Selling online

PayPal is among the best payment methods that are available for e-commerce websites and when you, as a seller, are using this option, you might come across different claims by buyers. The person you are selling to might claim that they did not receive the item, they got the item in a damaged form or they got a rock instead of a Phone. With these and other funny but serious claims you need all the information you can fit in your mind on how to protect yourself from some of these buyer claims. In most cases, sites that facilitate buying and selling are always on the buyer’s side which is why instead of waiting until you are dealing with a claim, you should take all the necessary measure to avoid giving the buyer a chance to grab your money before it is in your pocket.

PayPal Dispute or Claim – What You Need To Know

PayPal, like any other online payment system, has policies which will work against sellers if they do not take the necessary steps to ensure that they deliver and can prove this. Without tracking, the buyer may receive the item and claim that they have not set eyes on the package. The item can be placed at the buyer’s door then stolen. In this case, the seller will be liable because the buyer will claim that they never received the item and there is nothing to prove they did.

Though PayPal will protect buyers, there are also policies which are geared towards the protection of sellers from fraudulent buyers. It is crucial that you understand. Apart from the seller protection, you also need to be careful when transacting to reduce chances of fraudulent transactions.

Why does the PayPal payment dispute occur?

Your customer can file a payment dispute for several reasons:

  1. Item Not Received: The customers claim about ordering and paying for an unreceived product
  2. Item Significantly Not as Described: The customers claim that the product they receive is significantly different from the merchant’s description
  3. Unauthorized payment: The customers claim about being charged for purchasing without authorizing the transaction intentionally

PayPal Seller Protection

As a measure to ensure that all users are protected, PayPal has seller protection policies which are aimed at protecting sellers using this payment method to receive money from buyers. The seller protection protects sellers from the ‘unauthorized transaction’ and the ‘Item not received’ claims. These are the two main claims that sellers deal with and while some cases might be genuine, there are many claims that are made with ill intentions.

The main reason why crafty buyers will make a PayPal dispute is because they want to get their money back and still keep the item. PayPal will investigate and if there is proof that the items were received or the buyer made the purchase, then the seller will be on the winning side when the claims come knocking.

How to Respond to a PayPal Dispute

You can respond to the PayPal dispute by communicating with your buyer directly through the message board in the dispute case. Simply follow these steps:

  1. Sign in to the PayPal resolution center.
  2. Click View under Action.
  3. Now, you can respond to the buyer. Make sure to enter all the relevant documents that you have, including order tracking information and delivery confirmation email.

If the evidence that you have provided is compelling, you are very likely to get a positive outcome. However, if you don’t have the order tracking information or proof of shipment, the customer will have a significantly higher chance of winning the dispute. Usually, it takes 10-14 days for PayPal to review and solve the case.

Steps To Avoid PayPal Buyer Disputes and Claims

You may have seller protection but this will not be enough to protect you from some PayPal disputes. This is why you will need the following measures to ensure that the seller protection works and that you have extra backing when you are dealing with buyer disputes or claims.


Tracking the package is one of the best ways to ensure that the claim is settled and you emerge the winner. It works in a simple manner but will go a long way in providing proof that an item from the seller got to the buyer. When a package is in transit, a bar code is attached to it and the cod is scanned at different locations along the parcel’s journey. When scanned, the bar codes will provide information of where the parcel is coming from and its destination. This information will be updated to the shipping company’s website and will remain there as proof that the parcel went through that point. The buyer and the seller can therefore get the information of where the package is at any given moment.

If the buyer makes a claim that they have not yet received the item, the tracking information can be used in proving that the item actually got to a certain point or to the buyer’s location. This information is also important to confirm that the transaction was authorized by the buyer if he/she checks the progress of the shipment.


Always ensure that you have all the details regarding the insurance of the items you are shipping. Some shipping companies will have limited loss and damage liabilities and you should be aware of these limits. It is important to have the items covered because this will reduce the chances of claims made as a result of damaged or lost items.

Realistic Delivery Dates

Some claims are made based on the late arrival of the item and this is why you need to give realistic delivery dates and factor in any possible delays.

Avoid Confusion

Many buyers will report that what they have received from a seller is not what they wanted. In most cases, this is because the pictures and the description are not clear. Ensure that you take clear pictures of what you are selling and describe it as it is. This will eliminate any claim related to ‘I wanted an tablet and I received a chopping board’

Be Responsive

When a consumer makes a purchase online, they have the fear of not getting the item and losing their money. To prevent the tension and the worries that turn into claims, provide adequate contact information and respond as fast as you can. When emails are not replied for long, the buyer will want their money back and this will bruise your business. When the seller is in constant communication or answers emails promptly, the buyer will relax and no claims will be made.

Avoid Suspicious Buyers

There are buyers that will raise red flags when making orders and these are the kind of consumers you need to avoid. If the order is coming from a high risk area or the buyer asks to change the location of delivery after making an order, you should avoid such a transaction. If the order is higher than normal by far, this could be a fraudulent case. Any suspicious activity such as multiple orders from different people using the same address, suspicious emails addresses such as ‘$%1235@yahoo/’, and customers insisting on overnight shipping among others you should steer clear of these transaction as you could end up losing your items.

In Conclusion

It is better safe than sorry! When you are selling online, there are many risks involved and while PayPal’s Seller Protection will protect you partly, you will need to be cautious to ensure that your business is protected from buyers who want to use the Buyer Protection policy to rip you off. Whatever you sell, ensure that you have enough proof to show that the customer actually ordered the item, and that it got to them in good time. This is the only way you will win any buyer claim case.