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Dec 8, 2025
PayPal plays a pivotal role in online transactions, and staying updated with its evolving chargeback reason codes is crucial for merchants. A firm understanding of these codes not only aids in effective dispute responses but also plays a role in safeguarding business revenue.
MERCHANDISE_OR_SERVICE_NOT_RECEIVED
This code is employed when a customer claims that they have not received the product or service they ordered. In responses to such claims, providing proof of delivery or evidence demonstrating the completion of the service is essential.
MERCHANDISE_OR_SERVICE_NOT_AS_DESCRIBED
When customers assert that what they received differs from what they expected based on your description, it is beneficial to include detailed descriptions from your website along with quality images or product manuals that corroborate your representations.
UNAUTHORISED
If a customer disputes the validity of a transaction, it is crucial to present documentation that supports the legitimacy of the charge. This could include IP logs or correspondence confirming the transaction's approval from the customer.
CREDIT_NOT_PROCESSED
In cases where customers state that a refund was supposed to be issued but hasn’t been, it’s vital to show proof of the refund transaction, as well as any communication regarding its status.
DUPLICATE_TRANSACTION
For claims that suggest duplicate charges, presenting transaction records to demonstrate that the charge only occurred once can clarify the situation, along with evidence of refunds for any erroneous extra charges.
INCORRECT_AMOUNT
When a customer challenges the billed amount, showing sales slips or transaction records can provide substantial evidence to counter such claims.
PAYMENT_BY_OTHER_MEANS
If a customer contends they used a different payment method, supplying documentation such as bank statements to show the absence of those alternative payments is important.
CANCELED_RECURRING_BILLING
In scenarios involving cancelled subscriptions that still resulted in charges, it’s essential to offer documentation and communication records that verify the cancellation of the subscription.
Incorporating tools like Safe App can significantly enhance your chargeback management strategy. The platform automates the processes of evidence collection and submission, potentially improving your win rates in disputes. Safe App’s robust features ensure that you adhere to PayPal’s requirements while bolstering your transaction processes.
When handling disputes, merchants must submit specific evidence based on the chargeback reason. For instance, proof of delivery is necessary for unauthorized claims, while refund confirmations are essential for credit not processed disputes.
PayPal has introduced the Effortless Chargeback Protection tool, which can relieve eligible fraud chargebacks from fees and disputed amounts without demanding additional evidence from merchants, thereby simplifying defenses in these cases.
It's important to note that chargeback reason codes can vary by card network (e.g., Visa, Mastercard) as well as by region. PayPal's codes align with these broader categories yet are adapted for transactions conducted through its platform. Merchants generally have 10 days to respond to a chargeback after it is filed, while cardholders can initiate a chargeback within up to 120 days, depending on the card issuer's policies.
Understanding these reason codes is vital for merchants seeking to build robust evidence packages and enhance their chances of successfully disputing chargebacks. PayPal periodically updates its chargeback processes and reason codes, making it essential to remain current with the latest guidelines and best practices found in official PayPal resources.
In summary, being informed about the specific PayPal dispute reason codes, the required evidence, and the timelines for response is crucial for effectively managing chargebacks. Merchants who actively engage with these elements stand a better chance of safeguarding their revenue and maintaining positive customer relationships.