Frequently asked questions

1. What types of information or documents can a merchant provide when PayPal requests additional details for a dispute case?

Merchants can respond to a PayPal dispute request with one of the following:

• Proof of fulfilment
• Proof of refund
• Other evidence
• Accept liability and issue a refund

2. During the inquiry phase of a dispute (before escalation), what details about the dispute are visible to the merchant?

Merchants can view the disputed transaction, dispute reason, notes, and documents that the buyer provides when filing the dispute.

The PayPal Operations team does not participate in the inquiry phase. Only the merchant and the buyer are involved.

3. How are PayPal dispute fees determined? Is there a resource merchants can use to understand or reconcile these fees before escalation?

Dispute fee calculation details are available in the PayPal User Agreement.

4. What is the process for a merchant to opt in or out of the Inquiry phase in PayPal disputes?

To opt in or out of the inquiry phase, merchants can contact their PayPal Account Manager.

5. What evidence or documentation is required for merchant protection in disputes involving digital or intangible products, where traditional proof of delivery may not be available?

For digital or intangible goods, provide compelling evidence that the item was delivered or the order was fulfilled. This can include:

• A system record showing the date the item was sent and delivered to the recipient (such as email address or IP address).
• Confirmation that the recipient received or accessed the item.

See PayPal Seller Protection for more details.

6. Under what circumstances does PayPal request additional information from a merchant during a dispute, and how is this request communicated to the merchant?

PayPal reviews each dispute individually. If more information is needed, PayPal notifies merchants by email and webhooks. The case status changes to `WAITING_FOR_SELLER_RESPONSE`.

7. Can a merchant ever be charged both a dispute fee and a chargeback fee for the same case, or are these fees exclusive?

Dispute fees and chargeback fees are mutually exclusive.

8. Why does PayPal provide a standard 10-day response window for merchants to reply to chargebacks, even if the bank’s due date is different?

PayPal works with multiple payment processors, each with different chargeback response timelines. PayPal provides a standard 10-day response window to allow time to prepare the contestation document for the processor. The process may vary by region and processor type.