PayPal disputes overview
Last updated: September 16, 2022
Note: The information on this help page only applies if you have PayPal enabled as either your default payment processor or an alternate payment method in your Dashboard. For information on disputes for other payment processors, refer to this help page.
For disputes made directly with PayPal, PayPal will open an inquiry case that you will need to resolve.
As soon as a dispute is initiated, PayPal will send you an email with the dispute details, as well as what actions you can take to resolve the dispute. While we can’t prevent customers from filing these claims, we are more than happy to help you understand and resolve these disputes as smoothly as possible.
Next steps
Make sure to read your dispute notification email from PayPal thoroughly. It has information about the dispute as well as next steps for you to take. The email will direct you to your PayPal Resolution Center, where you can view the dispute directly, learn more information about PayPal’s dispute process, and take actions to manage and resolve the dispute.
Because the dispute is regarding a PayPal payment, you must take action through your PayPal dashboard to resolve it. If you have further questions about your dispute, please reach out to PayPal Support.
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Though clients can technically issue a refund for a PayPal dispute through FareHarbor, FareHarbor has no control over the PayPal dispute process. Any disputes in PayPal should be totally resolved on the PayPal site. Clients receive a dispute notification email from PayPal as well as a notification email from FareHarbor, but in both instances, the next steps listed in the email are to navigate to the PayPal Resolution Center to resolve the dispute.
What happens if the client loses a dispute?
If a client loses a dispute, they are able to request the chargeback be reviewed by PayPal up to two times. A merchant can appeal a dispute for a second time if the first appeal was denied. If both appeals fail to overturn a chargeback, the chargeback will go through and the funds will be deposited into the customer’s PayPal account.
What happens to the funds during a dispute?
PayPal will hold the amount in dispute in the client’s PayPal account for the duration of the dispute.