How to Dispute a PayPal Transaction

PayPal transactions can be disputed under two circumstances: when you think a transaction was an unauthorized use of your account or when an item you purchased wasn't as described or was never received. The process isn't difficult to initiate, though a dispute that is escalated to a claim can sometimes take a long time to be resolved. Regardless, if you are within the allotted time frame and have concerns, it's best to begin the process.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• PayPal account
• Transaction details

Open an Item Dispute

1. Gather relevant information for the transaction with which you have an issue, including the transaction ID and the date on which it occurred.

2. Choose the "Resolution Center" tab on the "Account Overview" page of your PayPal account. Click on the "Report a Problem" link in the Resolution Center.

3. Select "Item Dispute" for a case in which you didn't get an item or the item is not as it was described.

4. Enter the transaction ID and tell PayPal in detail about the problem. You will then post a message to the seller, which PayPal will send along with an email stating that a dispute has been opened.

5. Watch your eBay or PayPal account for messages from the seller and log in to the Resolution Center to read them.

6. Keep an eye on the deadline in the Resolution Center as you try to negotiate a reasonable solution with the other party. Either party has 20 days to escalate a dispute to a claim before the dispute closes.

7. Close the dispute if you work out a satisfactory agreement with the other party. File a claim if you have not been able to resolve the issue. Filing a claim takes the dispute out of your hands, making PayPal the deciding entity.

Open an Unauthorized Transaction Dispute

1. Select " Unauthorized Transaction" after clicking on the "Report Problem" link in the Resolution Center.

2. Provide detailed information about the transaction and submit your claim. Change your security question and password when prompted.

3. Look for a confirmation email from PayPal indicating an investigation has been opened.

4. Keep up to date on investigation activity by visiting the Resolution Center regularly.

Tips & Warnings

• Disputes can only be filed within 45 days of a transaction and for the purposes of reporting problems with a buyer, seller or an unauthorized transaction.

• Once a dispute has been opened, all communication with a second party should go through the Resolution Center.