Since Paypal is web based, they do have a web based solution. Buyers and sellers alike manage disputes and chargebacks in the Paypal Resolution Center. There are two main types:
– Buyer and seller negotiate to resolve issue. Communications are via email using the Resolution Center.
– Dispute is resolved or escalated to PayPal claim.
– Paypal investigates and resolves the claim. This section says they “try to resolve within 30 days.”
– Buyer says they didn’t make the purchase. A lot of times the buyer may not remember who they made the purchase from.
Paypal reviews the claim and asks seller to respond.
Seller are notified and have 7 days to respond. Paypal resolves the claim.
A more robust solution works like this. First, the buyer calls the credit card company to complain. They file a form which asks questions like ‘have they contacted the merchant and attempted to resolve first’. Ultimately, the payment processor sends notification of the dispute via email, fax, or mail. The most common practice is via mail. The clock is ticking since you only have so many days to respond.
The best system sends you an email alert so you can respond quickly.
With the addition of a scanner, you can even respond to retrieval requests right from your PC and upload documentation.
Compared to most processors, the Paypal solution is very robust so you can respond quickly. Where it falls apart from the merchants perspective, ie numerous complaints from merchants, is the unilateral decision making and sometimes long process that can last months.
The optimum solution is two-way communications. You can manage all chargebacks from a web based interface. The processor will give you a decision within 14 days after you respond. They will tell you if additional information is needed. If you think the disagree with a decision, you can add additional documentation via file upload, fax or snail mail.
|chargeback & dispute notification method||email, fax, snail mail options|
|days to respond||7||7|
|days for Processor to resolve after merchant responds||up to 30+||14|
|merchant response method||online form||online form|
|supporting documents||unsure||upload and add to file|
|merchant contact with processor||none after response filed||via phone, online; multiple contacts allowed|
|recourse if unhappy with decision||none||add additional documentation via fax, email, file upload|