Even though PayPal maintains that each dispute is decided based on available evidence from both the buyer and seller, some merchants believe that PayPal uses its dispute resolution strategies to hold onto money.

They think that each day PayPal can keep funds in its accounts is another day to generate interest income or leverage that money to increase revenue.

Here is a case in point as shared by one Bulldoza22:

“I sold an item to a buyer, and as a prompt seller, I shipped the item quickly with tracking. After I shipped, the buyer issued unauthorized access and opened up a dispute. 

I lost the case after providing all the info I could, including the shipping receipt. Not only was I not protected from this scam, but I also lost my item valued at over $100, paid extra for faster shipping at the request of the buyer, and was charged $20 by PayPal for the seller's chargeback, leaving my account at a negative balance. I have a tracking number that showed delivery, which I just added to the transaction on PayPal. 

I also shipped my sold physical item to the address from the PayPal transaction details, which also says I am eligible for seller protection. I did go into the Resolution Center > closed case list > clicked on the closed case, and there wasn't anything that I saw that let me Appeal the Dispute. 

The email (the same email listed on the transaction details) connected to the buyers PayPal account just sent me an email titled "F U"... So now, not only am I losing $210, my account is limited due to a negative balance due to the chargeback fee, and the buyer is also harassing me.”

In a similar classic "lost PayPal Dispute" incident MF Inverurie reported thus:

“I sold four certified gold coins on eBay to a buyer in Canada for £4,300. A month later, the buyer claimed the coins were “not as advertised.”

I asked for photos of the packaging and contents but received no reply. After another two months, I received five silver coins from the buyer with no accompanying message.

PayPal then told me that the £4,300 payment had been reversed by the buyer’s credit card issuer, although no dispute had been lodged with eBay or PayPal. 

It appears the Canadian bank is acting as judge, jury, and executioner, having reviewed the case and sided with the buyer. Paypal is acting as a victim in the middle and saying they have to honor the chargeback.” 

Even though PayPal’s decision at the end of a buyer claim is final, if you know how to Appeal a Paypal Dispute, you can overturn the outcome and reclaim your money. In the remaining part of this post, we shall analyze the best strategies to help you do just that!

Here’s how it works:

How to Appeal A PayPal Dispute and Win

After the final decision on a chargeback claim, merchants have ten days to appeal the decision. As it stands, robots first handle most PayPal disputes. But when someone appeals the case, then PayPal will assign a human to look into the case. However, before you proceed to Appeal a PayPal Dispute, below are some useful checklists to keep in mind:

  • Do you have new evidence or documentation that nullifies the dispute outcome?
  • Do you have a PayPal Seller Protection coverage?
  • Are you still within the timeframe of ten days PayPal Dispute appeal policy?

If you answered yes to the above questions, then you are in good standing to Appeal a PayPal Dispute outcome. The steps are simple: Log into your PayPal account, select the “Resolution” tab, and choose “Closed Cases” from menu options. Choose the dispute you wish to appeal and click on “Appeal.” The tab will open into a new window with an online appeal form. Enter all the relevant information and submit your form. 

PayPal will get an agent to contact you for further details. But if you don’t hear back from them immediately, you can pick up a phone and call them, or give them a few days before making further contact. 

Go beyond guesswork with an automated chargeback protection

In the second case we described above, the merchant had to use every resource available, including media pressure, to reclaim his money from PayPal even after appealing the dispute. That means there’s no guarantee that your appeal will go in your favor. But you don’t have to go through those grueling processes. Chargeflow is the world's first PayPal Dispute and Chargebacks automation system designed to help you recover more money without a hassle.

As entrepreneurs that struggled with PayPal disputes and fraudulent chargebacks, we built Chargeflow to give e-commerce merchants an upper hand in the dispute mediation process. We understand your pain points and have created a reliable technology tool to help you fight back!

With Chargeflow, you don’t have to worry about how to Appeal a PayPal Dispute. We handle the whole process from the moment you receive the dispute until you win it. Our fraud detection and chargeback management software makes it easier for you to run and scale your business without worrying about chargebacks and disputes weighing you down. To experience the Chargeflow exceptionalism today, sign up with our 2-click integration process here.


Tom-Chris Emewulu
Chief Disputes Analyst

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