PayPal guide · checked 18 October 2026
PayPal chargeback vs dispute vs claim
A PayPal case can arrive three ways, and each one has a different judge. Knowing which one you've got tells you how long you have, what it costs, and what evidence to send.
The three kinds of case
| Case | Who decides | Your deadline |
|---|---|---|
| Dispute | You and the buyer, between yourselves | The buyer can escalate it to a claim after about 20 days |
| Claim | PayPal | 10 days to respond; if you don't, it closes in the buyer's favour |
| Chargeback | The buyer's card issuer, not PayPal | Shown in the Resolution Center; PayPal passes your evidence to the issuer |
Buyers have up to 180 days from payment to open a PayPal dispute. A buyer who paid with a card through PayPal can skip PayPal and ask their card issuer for a chargeback instead, usually within about 120 days.
What it costs (US)
- Dispute fee: $15 when a case is escalated and decided, or $30 while your dispute rate is above 1.5%.
- Chargeback fee: $20 when the card issuer decides the case.
- The money: PayPal holds the disputed amount while the case is open, and you lose it if the buyer wins.
Fees differ by country and change from time to time, so check PayPal's merchant fees page for your account. Refunding during the dispute stage, before it's escalated, avoids the claim stage entirely.
Seller Protection
PayPal Seller Protection can cover you for item not received and unauthorised payment cases on eligible sales. In practice that means shipping to the address on the PayPal Transaction Details page and having online tracking that shows delivery. It doesn't cover "not as described" cases, so those come down to your evidence.
Evidence that wins
- Not received: tracking showing delivery to the PayPal address, with signature confirmation for higher-value orders. Full guide.
- Not as described: your listing text and photos, photos of the item you sent, and your messages with the buyer. Full guide.
- Chargebacks: the same evidence, written for a bank: what was bought, proof of delivery or service, and any history showing the cardholder used it. Fraud chargeback guide.
Respond step by step
- Open the Resolution Center and note whether it's a dispute, claim or chargeback, the reason, and the respond-by date.
- At the dispute stage, message the buyer. Many cases end here with tracking or a partial refund, and no fee.
- If it's escalated, upload your evidence with a short, factual explanation before the deadline.
- If you lose a claim and think PayPal got it wrong, you can appeal within 10 days.
Other platforms: Stripe · Shopify · WooCommerce · Square · eBay, Etsy and Amazon cases. PayPal holding your balance? Get frozen funds released.
Sources: Chargeback.io, PayPal chargeback guide (August 2026) (fees, 180 and 120 days, 10-day response and appeal); Redo, PayPal dispute vs claim vs chargeback (20-day escalation, who decides). Read 18 October 2026. Confirm the fee and deadline shown in your own account.