PayPal disputes are unique, as they are governed by PayPal's specific policies. As the Merchant of Record (MoR), Reach manages all communication and evidence submissions with PayPal and the customer, acting as an intermediary.

Reach's systems are integrated with PayPal's Resolution Center. All case updates, submissions, and final outcomes will be managed by our team and communicated to you through the designated case email thread.

The process

The process begins when a customer reports a problem or disputes a transaction to the PayPal Resolution Center. PayPal holds the transaction funds until the dispute is resolved.

A PayPal dispute has two stages. First is the dispute/inquiry, where the supplier has the opportunity to discuss the issue with the customer and reach a solution. If no resolution can be reached, the case may escalate into a claim.

Dispute/Inquiry

A dispute or inquiry is the first stage of the complaint.

PayPal facilitates communication through its Resolution Center, enabling suppliers and customers to find a suitable resolution. We recommend active participation in this process, as resolving the issue at this time prevents the dispute from being formally recorded and does not affect your dispute ratio.

Communication occurs directly between the supplier and the customer within the email thread (mediated by Reach). The supplier must respond to this thread, explaining the situation and proposing a mutually satisfactory resolution, such as a refund, replacement, or technical fix.

A dispute remains open for 20 calendar days and closes automatically if the customer takes no action. However, if a solution cannot be found, the customer may choose to escalate the dispute into a Claim.

Claim

A claim is the second stage of a PayPal dispute, following an unsuccessful dispute/inquiry period.

You must provide evidence to represent the case according to the reason code listed in Reach's notification. Using the same dispute email thread, provide your evidence to Reach as files (PDFs, images, or screenshots). Evidence must be provided before the indicated date in Reach's dispute notification—typically ten days, so be sure to act quickly.

Reach will review and submit the supplier's evidence to the PayPal Resolution Center. After the initial submission, you may submit additional information if new information becomes available.

A PayPal Review Agent looks at evidence from both parties and determines the allocation of funds. Reach will notify you of the outcome.

PayPal's Monitoring Program

Claims do not affect Visa/Mastercard chargeback ratios, but they do contribute to PayPal's internal Monitoring Program thresholds. PayPal uses a tier system, with 1% considered the standard tier and 1.5% the high tier. Remaining in the high tier for too long can result in the loss of seller protection, and the submission window for claims may be reduced from 10 days to 3 days.

Chargebacks via PayPal

A cardholder may bypass PayPal’s Resolution Center and file a chargeback directly with their card-issuing bank. Customers also file credit card claims if they suspect fraud, without first creating a dispute.

• Handling: Even when filed directly with the bank, if PayPal processed the original payment, the case is routed back to and handled entirely through the PayPal Resolution Center.
• Process similarity: The evidence requirements and submission process are similar to the Claim stage.
• Review time: This process is subject to longer review times by the issuing bank. Once PayPal submits the representment, the issuing bank may take up to 75 days to deliver a final decision.

Timelines

Dispute/inquiry stage: 20 calendar days from the date of email notification

Claim stage: 10 calendar days from the date of email notification

Chargeback via PayPal: Once PayPal submits the representment, the issuing bank may take up to 75 days to deliver a final decision.