ECOMMERCE
How to Prevent Chargebacks on PayPal?
Discover how to prevent chargebacks on PayPal, what is PayPal chargeback fee, how do you fight PayPal chargebacks and how to deal with any of the chargebacks you get.
How to Prevent Chargebacks on PayPal?
Thousands of businesses utilize PayPal for online transactions—they’re a familiar and trusted name among ecommerce merchants, and there’s virtually no barrier to entry. PayPal offers convenience and security to merchants who want to facilitate card transactions but might not want to assume responsibility for processing payments themselves.
What is PayPal Chargeback Fee?
Sellers do not incur chargeback fees from PayPal on transactions that are protected under the PayPal Seller Protection Program or are funded with a credit or debit card. Transactions that do not meet this criterion are charged a fee regardless of the outcome of the case.
If a purchase isn’t covered under PayPal Seller protection there is a $20 chargeback fee from PayPal. There can also be a host of other fees if the consumer’s bank becomes involved or if the consumer opts to circumvent the Resolution Center
How do You Fight PayPal Chargebacks?
Merchants are advised to adapt their chargeback fighting strategies to account for the unique aspects of the PayPal chargeback process. The optimal approach for fighting PayPal chargebacks depends on the type of products or services being sold.
1) Physical Good Chargebacks
* Original item or auction description, including photos.
* Transaction receipt with shipping and billing information.
* Seller Protection verified information (if the transaction is eligible).
* Shipment tracking number, with time stamp.
* Delivery receipt with a delivery address that matches the shipping address provided by the buyer.
* Copies of any correspondence between the buyer and seller.
* Proof of any refunds issued prior to the chargeback filing.
* Proof of any replacement products shipped.
* One-page cover letter explaining the seller’s reason for disputing the chargeback.
2) Digital Good Chargebacks
* Original item or auction description, including photos.
* Transaction receipt with billing information.
* Copy of the seller’s return policy and terms & conditions.
* Reports that prove that the product was downloaded or used by the buyer (this needs to include identifying information such as the buyer’s name, email, or IP address).
* For digital goods that are physically shipped, the delivery receipt with a delivery address that matches the shipping address provided by the buyer.
* Copies of any correspondence between the buyer and seller.
* Copies of previous completed transactions that were not disputed (in cases where the chargeback is for a recurring billing transaction).
* Proof of any refunds issued prior to the chargeback filing.
* One-page cover letter explaining the seller’s reason for disputing the chargeback.
3) Digital Services Chargebacks
* Copy of the service agreement signed by the buyer and seller, outlining all the deliverables and timeline of the service to be provided.
* Transaction receipt with billing information.
* Copies of the service cancellation policy and terms of service.
* Copies of any correspondence between the buyer and seller.
* Service delivery acknowledgement signed by the buyer.
* Copies of previous completed transactions that were not disputed (in cases where the chargeback is for a recurring billing transaction).
* Proof of services rendered to the buyer (for digital marketing services and similar businesses).
* Proof of any refunds issued prior to the chargeback filing.
* One-page cover letter explaining the seller’s reason for disputing the chargeback.
4) Service Providers Chargebacks
* Copy of the service agreement signed by the buyer and seller, outlining all the deliverables and timeline of the service to be provided.
* Transaction receipt with billing information.
* Copies of any correspondence between the buyer and seller.
* Service delivery acknowledgement signed by the buyer.
* Copies of previous completed transactions that were not disputed (in cases where the chargeback is for a recurring billing transaction).
* Proof of any refunds issued prior to the chargeback filing.
* Proof of any replacement services or products provided to the buyer.
* One-page cover letter explaining the seller’s reason for disputing the chargeback.
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Additional Links:
How to Implement Return Policy?