chargeback happens when a buyer asks their credit card issuer to reverse a completed transaction. Although a chargeback may appear similar to a PayPal buyer claim, it is in fact initiated outside of PayPal between the card holder and card issuer. As such, the outcome is ultimately decided by the credit card company and not by PayPal. Chargebacks are one of the unfortunate costs of doing business. Many sellers factor this cost into their business risk model.
Common reasons why a buyer might file a chargeback include:
The card holder is claiming unauthorised use of their credit card
The card holder is claiming they did not receive the item or the item received was different from the original description
If a chargeback occurs on a payment you receive, we’ll notify you by email and ask you to respond with information. We will then use the information you provide to determine if you are eligible for Seller Protection or dispute the chargeback with the credit card issuer on your behalf.