PayPal Dispute Response Template for Ecommerce

How PayPal disputes work

When a buyer has a problem with a transaction, they can open a dispute in the PayPal Resolution Centre. The process has two stages: a dispute and a claim. Understanding the difference matters because your response strategy at each stage is different.

PayPal disputes are handled through the Resolution Centre, not through the card network in the first instance. If the buyer paid using their PayPal balance or a bank transfer, the entire process stays within PayPal. If the buyer paid via a card connected to their PayPal account, the dispute may eventually escalate to the card network as a chargeback if PayPal's process does not resolve it.

Timeline: once a dispute is opened, both parties have 20 days to resolve it directly. If unresolved, it can be escalated to a claim, after which PayPal reviews the evidence and makes a decision. Once a claim is filed, PayPal typically holds the transaction funds while the review is active.

Dispute versus claim: key differences

Understanding where you are in the process tells you what to do next:

• Dispute (open): both parties can communicate in the Resolution Centre. You can offer a refund, provide tracking, or clarify the situation. The buyer can close the dispute if the issue is resolved.
• Claim (escalated): PayPal is now the decision-maker. Both parties submit evidence. PayPal reviews and issues a decision. Funds remain on hold until the decision is made.
• Chargeback (card dispute): if the buyer paid by card and initiates a chargeback outside of PayPal's system, PayPal will contact you to respond. This follows the card network's rules, not PayPal's.

If you are at the dispute stage and the issue is straightforward, resolving it quickly is usually the most efficient outcome. If the situation escalates to a claim, the template and evidence guidance below applies.

Evidence requirements

For a PayPal claim, you upload your evidence directly in the Resolution Centre. PayPal accepts documents, screenshots, and images. The same principles of good evidence apply as in a card chargeback: targeted, labelled, and focused on the specific dispute type.

Core evidence for all PayPal disputes:

• Order details: transaction ID, order date, buyer name, email, items, and total
• Shipping confirmation with tracking number and carrier name
• Full carrier tracking history showing all events from dispatch to delivery
• Proof of delivery: delivery confirmation, photo, or signature if available
• Order confirmation email and shipping notification email
• Your shipping policy and return policy

Additional evidence for item not received claims:

• Carrier tracking showing delivery to the address the buyer provided
• Confirmation that the delivery address in your order matches the address in the PayPal transaction
• Any carrier inquiry reference if you have opened one

Additional evidence for significantly not as described claims:

• Screenshots of your product listing and description at the time of sale
• Product photos showing the item as listed
• Any communication from the buyer prior to the dispute (or documented absence of any such contact)

PayPal dispute response template

When responding in the Resolution Centre, you can use the message field to submit your position and upload supporting documents. Use this template as the basis for your written response. You can paste it into the Resolution Centre message field or submit it as an attached document.

Common dispute types and how to respond

Item not received (INR)

This is the most frequent PayPal dispute type for ecommerce sellers. The buyer claims the item did not arrive. Your response should lead with the tracking record showing delivery to the address on the transaction.

If tracking shows delivery, submit the full tracking history, highlight the delivery event, and confirm the address matches the PayPal transaction. PayPal's Seller Protection policy covers item not received disputes for sellers who have proof of delivery to the transaction address.

If tracking does not show delivery because the item is genuinely lost, consider whether resolving the dispute with a refund or replacement is more practical than pursuing the claim. For items covered by shipping insurance, open a carrier claim first.

Significantly not as described (SNAD)

The buyer claims the item was materially different from the listing. Your response should compare the product listing directly to what was shipped. Include listing screenshots, product photos, and any communication prior to the dispute.

PayPal's review for SNAD disputes considers whether the item was materially different, not whether there are minor variations. If your listing accurately described the product, including any variation or handmade characteristics, state this clearly and provide the listing text.

Unauthorised transaction

The buyer claims they did not make the purchase. In most cases PayPal handles unauthorised transaction disputes internally as part of their buyer and seller protection programmes. If PayPal contacts you for evidence, provide the transaction record, the delivery confirmation (showing delivery to the PayPal account address), and any fraud checks your platform performed.

Response checklist