Two kinds of PayPal dispute
Internal disputes are opened by the buyer in PayPal's Resolution Center (or through PayPal support). PayPal holds the disputed payment, and you and the buyer talk it out first. External disputes are chargebacks the buyer files with their card issuer; the bank decides, and PayPal relays evidence.
The timeline
| Stage | What happens |
|---|---|
| Dispute opened | The buyer has up to 180 days from payment. PayPal notifies you and holds the funds. |
| Inquiry (up to 20 days) | You and the buyer can resolve it directly: answer, offer a full or partial refund, or share tracking. |
| Claim | If either side escalates, PayPal asks both for evidence and decides, within about 10 days per its documentation. |
| Resolution and appeal | The hold is released to you or the buyer is refunded. Either side can appeal with more evidence. |
Item not received and significantly not as described cases start as inquiries. Billing errors, duplicate charges and unauthorized transactions go straight to the claim stage.
Use the inquiry stage
The inquiry is a conversation, and PayPal reads it if the case escalates. Reply quickly, stay factual, share tracking, and make one clear offer if the buyer has a point. A buyer who is answered is less likely to escalate, and a seller who answered well looks better to the reviewer if they do.
If you promise a refund or replacement in the inquiry, send it. A promise that is not kept is one of the hardest things to argue against later.
Evidence PayPal accepts
- Proof of delivery: a tracking number and carrier showing delivery to the buyer's address.
- Proof of refund: the refund ID if you already refunded.
- Other documents and notes: the listing at the time of sale, photos, your messages with the buyer, logs for digital goods.
Files can be JPG, GIF, PNG or PDF, each under 10 MB, up to 50 MB per submission.
Fees
PayPal's US fee page (updated October 1, 2026) lists a $20 chargeback fee for card transactions not processed through a PayPal account or guest checkout, and dispute fees for transactions through PayPal checkout: $15 standard and $30 for high-volume sellers. See PayPal's merchant fees page and user agreement for when each applies in your country.
A pre-chargeback alert is a chance to avoid the fee
PayPal can send a pre-chargeback alert about a likely chargeback. According to its documentation, refunding within 20 hours, without fulfilling the order, avoids the chargeback and its fees. If the order has not shipped, that is often the cheapest outcome.
Keep PayPal and card disputes in one place
Sellers who take both PayPal and card payments end up with disputes in two dashboards and buyer messages in a third tool. Whatever you use, keep one record per buyer problem with every message, refund and tracking event in order. That record answers PayPal inquiries and card chargebacks alike. For card disputes through Stripe, see how to respond to a Stripe dispute.
Questions
How long does a buyer have to open a PayPal dispute?
180 days from the payment date, according to PayPal's developer documentation.
What is the difference between a dispute and a chargeback on PayPal?
A dispute is opened with PayPal and decided by PayPal if it escalates to a claim. A chargeback is filed with the buyer's card issuer, which decides; PayPal only passes evidence between you and the bank.
Can I appeal a PayPal decision?
Yes. PayPal's documentation says both merchants and buyers can appeal unfavorable decisions, with additional evidence.
Keep the evidence before you need it
Rebutdesk is an open-source helpdesk where Stripe and PayPal disputes open inside the buyer's support case, so the conversation, refunds and shipping events are already in order when the deadline starts. See how it works.
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