3 min article

Handling payment disputes as a managed payments seller

In some situations, your buyer may ask their financial institution to open a payment dispute if they believe there’s an issue with their order. Learn how to handle a payment dispute on an eBay transaction as a managed payments seller. 

A payment dispute on eBay is created when a buyer initiates a chargeback or other type of dispute with their financial institution, such as a PayPal dispute. The main reasons buyers file payment disputes include:

  • They didn’t receive their item
  • They received an item that doesn’t match the description in your listing
  • They didn’t recognise the transaction
  • They were charged more than once for an item
  • They were charged more than once for the transaction
  • They changed their mind

If one of your buyers files a payment dispute and it’s successful, the financial institution will reverse the transaction. This means that the funds originally paid by the buyer are returned to them. Depending on why the buyer’s payment dispute was successful, we may recover these funds from you.

Buyers can't use more than one resolution method to get a refund. If a buyer files a payment dispute, any eBay Money Back Guarantee claims, open order cancellations, or return requests for the same transaction are immediately closed. In addition, you won't be able to initiate refunds through Orders in Seller Hub or Sold in My eBay if there's an open payment dispute.

Responding to a payment dispute

When a dispute is opened, you’ll receive an email from eBay to let you know. At that time, we may ask you for additional information or to confirm details of the transaction so we can respond to the dispute on your behalf within 5 days of notification of the dispute or as indicated in the email.

Respond to a payment dispute

When a dispute is filed by your buyer, you may choose to:

  • Accept the dispute so the buyer receives the refund
  • Challenge the dispute, and provide evidence or additional information, such as proof that the item was delivered to the shipping address provided in the order

Information that can help when responding to a payment dispute:

  • Tracking information showing the order was delivered successfully to the shipping address that matches the address on the order
  • Detailed photographs of the item from the listing showing the item’s condition, including proof of authenticity, if applicable
  • Relevant correspondence between you and the buyer working to resolve any issues
  • Valid buyer identification for a Click & Collect transaction

How payment disputes are processed

eBay will submit any relevant information you provide about the dispute to the appropriate financial institution. There may be situations where eBay already has enough information to challenge the dispute, and in this case, we’ll share it on your behalf.

Once you’ve accepted a dispute, or challenged it by providing evidence, we’ll update you about the status of the case by email, as we receive updates from the financial institution. You can also check the status of any payment dispute in the Resolution Centre.

There may be cases where eBay will challenge a dispute with the financial institution, despite how you choose to respond. In some cases financial institutions may reopen a closed payment dispute. We’ll notify you in those situations and may request that you provide additional information for challenging the payment dispute.

The payment dispute could take up to 90 days to be resolved, depending on the payment method or card provider.

Please note, the final outcome of the payment dispute is decided by the financial institution. You may qualify for seller protections if you follow the guidelines below. If the payment dispute was filed because the item was not as described, you can request that the buyer returns the item. However, keep in mind that we can’t force the buyer to return the item.

Dispute fees

If a buyer files a payment dispute, and you’re found responsible for the disputed amount, you’ll be charged a dispute fee by eBay. If you accept the payment dispute and issue a refund, eBay will waive the dispute fee, and you’ll be responsible for the refund amount issued to your buyer.

Seller protections

If the transaction is eligible for protection, we’ll cover the amount of the dispute, and waive the fee in the following situations:

When a buyer reports that they haven’t received their item:

Prior to the payment dispute being received: an eBay Money Back Guarantee claim of the same type for the transaction in question was closed with eBay determining you weren’t at fault; or

Prior to the dispute being received: an eBay Money Back Guarantee claim of the same type for the transaction in question was resolved as a result of a refund to your buyer.

The buyer was refunded: you previously issued a full refund for the same transaction.

You have provided proof of delivery, which includes all of the following:

  • Tracking number provided by the shipping company (uploaded by the date in the payment dispute notification)
  • A delivery status of "delivered"
  • Date of delivery
  • Recipient's address, matching the address on the order (including the city, county, postcode or international equivalent)
  • Proof of signature confirmation if an order has a total cost (including shipping and taxes) of £450 or more, uploaded as an image while contesting the payment dispute

Or

You have validated the identity of the person picking up the item and provided proof of collection while contesting the payment dispute, which includes all of the following:

  • Date of collection
  • Store of delivery, matching the delivery address on the order
  • Order ID, item number, item title, and price paid
  • The customer’s signature on the collection form

When a buyer reports that an item doesn’t match the listing description:

Prior to the payment dispute being received: an eBay Money Back Guarantee claim of the same type for the transaction in question was closed with eBay determining you weren’t at fault; or

Prior to the dispute being received: an eBay Money Back Guarantee claim of the same type for the transaction in question was resolved as a result of a refund to your buyer.

The buyer was refunded: you previously issued a full refund for the same transaction.

The buyer was partially refunded: you previously issued a partial refund for an item that was returned to you opened, used, or damaged. The final value fee is not refunded in the case of a partial refund.

When a buyer reports that they don’t recognise the transaction:

You have provided proof of delivery, which includes all of the following:

  • Tracking number provided by the shipping company (uploaded by the date in the payment dispute notification)
  • A delivery status of "delivered"
  • Date of delivery
  • Recipient's address, matching the address on the order (including the city, county, postcode or international equivalent)
  • Proof of signature confirmation if an order has a total cost (including shipping and taxes) of £450 or more, uploaded as an image while contesting the payment dispute

Or

You have validated the identity of the person picking up the item and provided proof of collection while contesting the payment dispute, which includes all of the following:

  • Date of collection
  • Store of delivery, matching the delivery address on the order
  • Order ID, item number, item title, and price paid
  • The customer’s signature on the pickup form

Transactions not eligible for protection

Items that are not in line with eBay’s prohibited and restricted item policies are not eligible for seller protections.

Items not covered by the eBay Money Back Guarantee include vehicles, real estate, websites and businesses for sale, classified ads, services, digital content, intangible goods, and some business equipment categories. These items are not eligible for seller protections.

Additionally, an exchange or store credit given on a return for a Click & Collect transaction is not eligible for seller protections.

Avoiding payment disputes

To help prevent payment disputes, you should always:

  • Create detailed, accurate listings
  • Include multiple, high-quality photos of your items
  • Use a tracked shipping service with proof of delivery
  • Include signature confirmation if an order has a total cost (including shipping and taxes) of £450 or more
  • Be responsive to buyers who contact you through eBay Messages and work to resolve any issues
  • Retain communication and supporting documentation through eBay tools

You can benefit from seller protections by following our guidelines and providing evidence when necessary.

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