How To Win Disputes, Claims and Chargebacks As A Seller

How To Win Disputes, Claims and Chargebacks As A Seller

As PayPal remains the most popular and most trusted payment processor. In this article, we will be going to talk about how to win disputes as a seller in having a PayPal business account, and we’ve got a few different supporting articles that will emphasize its aspects.

There are different types of claim/dispute cases that a customer can open if something goes wrong with their orders. In all of the cases resulting in a temporary hold on transaction funds, the best course of action is to act fast. Also, understanding them helps you create the easiest approach to resolve those filed Disputes/Claims.

The common type of cases are Disputes and claims, which are filed with PayPal, and chargebacks, which are filed with the card issuer, they are the two usual sorts of instances and which you need to understand to provide correct documents once opened by buyers.

The tabular below showcases that when the buyer files a claim/dispute this would be the light-based scenario, because this process is owned and decided by Paypal, and Paypal has an interest in making the right decision because both the buyer and seller are users of the Paypal platform, so they want to keep both parties happy.  You can also notice that there will be no processing fee making it the best case to resolve as no implied amount on every transaction.

On the other hand, if you get a chargeback or a bank reversal request, these will be going to be more difficult to win, and also the process takes longer, and be decided on by the debit or credit card company - the bank, who have a vested interest in keeping the buyer happy because that is their customers as well and they don't have as much of a desire to keep the seller happy and satisfied with their decision. These types of cases also have an added cost to the seller as it implies processing fees that can run to $20.

Getting to know General Terms:

  • Item Not Received (INR) - This occurs when a buyer complains that an item they purchased was never delivered.
  • Significantly Not As Described (SNAD)- This happens when an item differs significantly from the Seller's description in the item listing.
  • Unauthorized Transaction (UT) - Any transaction that you did not initiate and did not allow anybody else to make on your behalf. Simply a transaction without permission.

It's also worth noting that PayPal offers a seller protection program to secure the interest of all sellers, which is included at no extra cost if you have a PayPal Business Account. This account will safeguard sellers from illegal transactions or unauthorized transactions and on items not received claims. All claims and disputes will be under a resolution center where you will respond to your buyers and provide explanations and suggestions on how to resolve the open case.

As a seller, it's best practice to follow the 5 steps on how you are going to respond to different disputes.

  1. Have the tracking information ready
  2. Prepare the confirmation delivery
  3. Respond to raised disputes as quickly as possible
  4. Respond with accurate information
  5. Provide all information Paypal is looking to solve these disputes

On the other hand, It is also good to point out 5 important factors on how sellers can prevent disputes.

  1. Providing detailed accurate descriptions of every item
  2. Includes pictures from multiple angles of every item
  3. When an item is purchased, send it out as soon as possible and provide the buyer with tracking information.
  4. Provide them with your contact information so they can see when you're available and what your reaction time frame is.
  5. Set a clear and sure store return and refund policy

Highlighting also that sellers should always be professional, helpful, and courteous, try to understand where their buyers are coming from, and be able to work together trying to meet with a solution that works best for both parties (buyer/seller). Better off you'll be in terms of your buyers knowing exactly what they can expect from you. In this approach, they will be less inclined to file a complaint.

Furthermore,  it's also better if you keep these things in mind and do them consistently to avoid any possible disputes. It is also essential that you need to be on good terms with your buyers by having good communication and letting them know exactly what they can expect from you. If you can't come up with a conclusion that satisfies both parties. Then these can escalate to a claim for things such as items not received (INR),  items being significantly not as described (SNAD), or unauthorized transactions(UT). In this article, we have prepared a PayPal Snip on successful communication from sellers with customers to prevent any Claims/ Disputes.

On this note we recommend, sellers run through all these step-by-step resolution processes and know what to implement the best practices and how you'd go about trying to win these filed cases, and it's also worth bearing in mind that there is a Seller Protection Program where Paypal will cover things like unauthorized transactions and items not received as long as you provide the appropriate information and do your best to answer any questions that Paypal has and give them any information that they'll need to resolve the problem.

We've talked about the dispute/claim procedure in this article while making a point that when claims are being escalated this is when PayPal acts as an intermediary, gathering information from both parties and then deciding what they think will work best in that circumstance.

It has been said that when dealing with a chargeback or a bank reversal, PayPal will be less biased than dealing with disputes/claims. It is because of a different entity which is the bank making those decisions on satisfying and making their customers happy. That is why it is tougher to deal with those situations.

As a seller, it is a good practice that in all filed claims from buyers it is always a great approach to try your best as a seller to follow practices and do anything you can to ensure that the buyer knows what to expect during the purchasing process and If you follow mentioned guides, you'll have a lot fewer troubles over time, so make sure to put in the effort upfront so that you don't have as many of these disputes, chargebacks, and other issues to deal with, which can eat up a lot of your time and aren't nice to deal with.

Spotting the pain points of the sellers, this article also recommended using an automated solution to guard you on all filed claims/disputes. Paltrack is one of those dependable solutions available in the market, with the major benefit of assisting merchants in avoiding PayPal Disputes and reducing the account's holding period. We have highlighted the value of using our app in the simplest way. You can also check and appreciate

How Paltrack helps you avoid PayPal Disputes and PayPal account suspensions


References:

https://www.paypal.com/us/brc/article/sellerprotection

https://www.paypal.com/us/brc/article/customer-disputes-claims-chargebacks-bank-reversals