marketplaces

Manage Disputes

Important: PayPal for Marketplaces is a limited-release solution at this time. It is available to select partners for approved use cases. For more information, reach out to your PayPal account manager.

Occasionally, something goes wrong with a customer's order. Customers can dispute charges by filing a case with PayPal, their bank, or their credit card company to reverse charges, or chargeback.

When a customer disputes a charge, you can counter with evidence to show the charge is legitimate. You can provide:

  • Proof of delivery
  • Refund Documents
  • Notes
  • Logs

Dispute solutions

With PayPal for Marketplaces, you choose how involved or informed you'd like to be in the dispute process.

Involvement Path
Let sellers manage their own disputes Connected
You can actively manage customer disputes Managed

Important: If you manage customer disputes for your sellers, you must respond to disputes in a timely manner. It is your responsibility to respond to the case with relevant information.

No matter which path you choose to handle customer disputes, you can

Enable notifications

Enable dispute notifications, add the Disputes permission text to the permissions that your seller agrees to during onboarding. For more information on available permissions, see the rest_endpoint_feature parameter in the Partner Referrals API. You can pass any of the dispute enum values in the initial create or in an update call.

Note: The seller is responsible for responding to disputes in a timely manner in PayPal’s Resolution Center.

PayPal communicates directly with the seller when disputes occur.

Generate reports

PayPal provides reports to help you manage day-to-day operations and provide transaction-level insight.

Reports are generated every 24 hours and available by 12pm daily in the leading time zone of the reporting window.

For more information, see PayPal Reports.

Use the PayPal Customer Disputes API

Important: You must have a PayPal access token to use the Customer Disputes API. For more information, see Prerequisites.

When a customer disputes a charge, you can use the Customer Disputes API to:

Third-Party Integrations

If you use the Customer Disputes API on behalf of your sellers, provide a JSON Web Token (JWT) in the PayPal-Auth-Assertion header. The JWT represents a set of claims as a JSON object encoded in a JSON Web Signature (JWS) and/or JSON Web Encryption (JWE) structure.

For more on the PayPal-Auth-Assertion HTTP header, see HTTP Request Headers.

Feedback