A Paypal Chargeback can occur when a customer who has made purchases and payments through PayPal sends a complaint with his or her credit card company. It may also occur when an online merchant or seller on PayPal receives a complaint from his customers. Whether you own a small scale business, medium-sized business ora large online enterprise, these chargebacks can still have an effect on your business.
When a customer files a chargeback with the Credit Card Company or issuer, it actually means that they are asking the issuer for a refund of their cash. So if a customer should make a payment using paypal credit and a problem comes up, they will have to file a chargeback to the seller asking paypal for a refund of their cash or paypal balance.
Reasons for a Paypal Chargeback
Chargebacks could occur for so many reasons. I will be listing the most common reasons why it occurs.
- The item paid for was not received
- Being charged more than once for an item
- Unauthorized payment or transaction
- Receiving a damaged item or wrong item you did not order for
- When you do not recognize a credit card charge
How to Resolve a Paypal Chargeback
As a marketer or seller on the paypal platform, when you receive a paypal chargeback, you will be notified. And if you think the chargeback is not valid, then you could resolve it by following the steps below;
- Go to the “Resolution Center”.
- Click on “Respond”, you will find this under “Action”, just close to your case.
- Go through the details of the complaint and click on “Resolve chargeback now”.
- Choose one out of the options listed below to resolve the chargeback
- Accept liability for the chargeback
- Provide a valid proof of refund, which could be within or outside paypal
- Provide a valid tracking detail to dispute the chargeback you have received
- Provide an evidence for your dispute.
- Click on “Continue” and follow all other instructions given to you.
How to Avoid a PayPal Chargeback
- Provide valid contact information – try to call and communicate with your customers when an item is being purchases.
- Offer a clear return policy.
- Be responsive at all times.
- Ship and send the items to buyers with online tracking.
- Order for shipping insurance.
- Make use of your personal shopping service.
- Be careful when shipping the items.
- Suggest a dispute resolution and so much more.