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4 Comments

How to avoid PayPal Chargebacks?

PayPal chargebacks seem to be a recurring problem and one that makes an otherwise acceptable payment processor unusable.

Consulting PayPal docs we get:

There are several things you can do to prevent disputes and chargebacks from happening in the first place:

Provide contact information.

Buyers may not resort to a dispute or chargeback if they can talk to you about the issue. Provide an email address or phone number, or even call buyers in advance when you're selling higher-priced items.

Ref: https://www.paypal.com/tc/webapps/mpp/security/disputes-chargebacks

So does that work ?

Does anyone have direct experience of that being the case ?

Thanks!

on November 11, 2022
  1. 1

    Oftentimes, customers will initiate a chargeback if they feel as though they didn't get what they paid for. When you make it easy for them to reach out to you, it gives you a chance to fix the issue before they open a dispute with their credit card provider. Chargebacks aren't really the result of any particular service provider, they happen everywhere.

    One other thing to check - make sure whatever you have set to show on bank statements is recognizable as coming from your company. People will also initiate chargebacks if they don't recognize a charge.

    1. 1

      Thanks. I've just realised my reading of PayPal's use of the words "may not" was wrong. I took it as "cannot" - probably because I was looking for a solution - when they actually mean "may choose not to". So, the problem still stands.

      As you say disputes & chargebacks are part of the system regardless of the service provider - but PayPal seems to have a particularly bad reputation.

      1. 2

        Yeah, unfortunately I think it's because people don't pay attention and realize they're checking out via Paypal... so when they see Paypal on their statement they think "I never used Paypal" - its definitely annoying!