How to Reply to PayPal When You Get a Dispute or Chargeback (Template Updated)

When a customer files a dispute or chargeback on PayPal, it's crucial to respond quickly and professionally to protect your business. PayPal allows you to submit evidence to prove your case, and a well-structured response can increase your chances of winning the dispute.

This guide will explain: ✔️ Why customers file disputes ✔️ How to respond effectively ✔️ A proven dispute response template

Why Did You Receive a Dispute or Chargeback?

Customers may open a dispute or chargeback for the following reasons:

1️⃣ Item Not Received (INR) – The customer claims they never received the product. 2️⃣ Significantly Not as Described (SNAD) – The customer says the product is different from what was advertised. 3️⃣ Unauthorized Transaction – The customer reports that their PayPal account was used without their permission. 4️⃣ Duplicate Charge – The customer was charged twice for the same product. 5️⃣ Refund Not Issued – The customer expected a refund but hasn’t received it yet.


How to Respond to a PayPal Dispute

Step 1: Log In to PayPal’s Resolution Center

  • Go to PayPal’s Resolution Center to check the details of the dispute.

  • Review the reason for the dispute and check any messages from the buyer.

Step 2: Gather Evidence

Prepare the following documents to support your case: ✅ Tracking number (for physical products) ✅ Proof of delivery (if possible, include signed confirmation) ✅ Screenshots of conversations with the buyer (if applicable) ✅ Product description & listing showing accurate details ✅ Refund policy & terms (if relevant)

Step 3: Submit Your Response

  • Click "Respond" and choose the appropriate option: ✔️ Provide tracking information if the product was shipped. ✔️ Explain the issue and offer a resolution. ✔️ Dispute the claim if you have solid proof that the transaction was legitimate.

Step 4: Follow Up

  • PayPal may take 10–30 days to review the case.

  • If they need more information, respond promptly.


PayPal Dispute Response Template (Updated)

Use this template to craft a clear and professional response to a dispute:

Subject: Response to PayPal Dispute – [Case ID: XXXXXXX]

Dear PayPal Dispute Resolution Team,

I am writing to respond to the dispute filed by [Customer’s Name] regarding the transaction [Transaction ID: XXXXXXX] on [Purchase Date]. Below is my response and supporting evidence.

1️⃣ Order Details:

  • Product: [Product Name]

  • Transaction Amount: [$XX.XX]

  • Order Date: [MM/DD/YYYY]

  • Tracking Number: [Tracking Number (if applicable)]

  • Courier: [Shipping Company]

2️⃣ Customer Claims: [Summarize the customer’s dispute. Example: "The customer claims they never received the order."]

3️⃣ Our Response & Supporting Evidence:

  • The order was shipped on [Shipment Date] and was delivered on [Delivery Date] (see tracking details attached).

  • The item was delivered to the correct address provided by the customer.

  • Attached are screenshots of communication where the customer acknowledged receipt.

  • Our product description clearly states [explain any details relevant to the dispute].

4️⃣ Business Policies (if applicable): According to our refund policy, returns must be requested within [X] days and require the item to be returned in original condition. The customer did not follow this process.

5️⃣ Resolution Request: Given the provided evidence, we kindly request PayPal to resolve this case in our favor. If more information is needed, please let us know.

Best regards, [Your Name] [Your Business Name] [Your Contact Information]


Tips to Avoid PayPal Disputes in the Future

🔹 Use detailed product descriptions & images – Avoid misleading buyers. 🔹 Provide tracking information – Upload tracking numbers for all shipments. 🔹 Have a clear refund policy – Display refund terms on your website. 🔹 Communicate with customers – Respond quickly to their concerns. 🔹 Resolve issues before disputes happen – Offer replacements or refunds when necessary.

By handling disputes professionally and providing solid evidence, you can protect your business and maintain a strong PayPal account standing. 🚀

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