Manage Disputes

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. <this needs to be clearer; please provide better information for this paragraph>

Generate reports

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

Report Description Provides
Partner Fee Reconciliation Report A detailed view of the transactions affecting the partner-fee account. Reconciliation and management of revenue through partner fees.
Payouts Reconciliation Report A detailed view of the activity on the platform. Reconciliation of end-to-end money flow and transactions.
Marketplace Case Reconciliation Report A detailed view of case management processes. Details about cases opened or closed within the reporting time frame.

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:


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