How to Avoid a PayPal Chargeback

Member

By Jennifer Claerr
User-Submitted Article

Article Rating:

(6 Ratings)

Avoid a PayPal Chargeback

PayPal chargebacks occur when a dissatisfied customer charges back a purchase using his credit card. PayPal chargebacks can only be made when a credit card was originally used to pay for the transaction. PayPal chargebacks are a particular problem when selling items on eBay, as eBay buyers are often disappointed with the item received or the time it takes to ship the item. It is difficult to avoid PayPal chargebacks completely, but you can keep them to a minimum by following certain precautions.

Difficulty: Moderately Challenging

Instructions

Step 1

Always describe your items accurately. Avoid using stock photos of your merchandise. Instead, take clear pictures of your item and include them with your listing description. Since many PayPal chargebacks result from the seller improperly describing an item, or a buyer misunderstanding the description, this can help you to avoid unnecessary chargebacks. Also include a clear description of your return policy with all your listings.
Step 2

Participate in the PayPal Seller Protection Program if you're an eBay seller by always shipping your items with delivery confirmation to a confirmed address. If possible, use PayPal's shipping service, which includes free or low cost delivery confirmation. If you're shipping internationally, you must use Express Mail to get delivery confirmation. If there is a PayPal chargeback on a shipment that is never recieved by the buyer, you will end up stuck with the shipping charge, even if you get your item back. On international shipments, this charge can be very high. If this is a concern, you should consider refraining from shipping internationally.
Step 3

Maintain good records of your sales transactions. Keep all records such as shipping receipts and label copies as well as email notifications of sales transactions in a place where you can easily find them. Also keep records of any conversations you have had with the customer, whether on the phone or by email.
Step 4

Respond promptly to your customer if he has a complaint about an item or its delivery. Be as helpful as possible. Provide shipping information such as the shipping date and tracking number. If a shipment has been lost, suggest that the customer file a complaint with the post office. If your customer wants to file a PayPal chargeback, ask him to open a PayPal dispute instead. The dispute will appear in your PayPal Resolution Center, where you can respond to resolve the problem.
Step 5

Dispute any PayPal chargeback within three days of receiving notification from PayPal, if you believe the chargeback to be wrongful. Provide your proof of shipping to PayPal immediately. Keep in mind that during the chargeback process, the funds from the customer will be temporarily frozen. If the credit card company decides in favor of the buyer, they will be deducted from your PayPal account.