How do I respond to Unauthorized Transaction disputes?

If a buyer claims they didn’t make a payment, PayPal may open an Unauthorized Transaction dispute. This means their account may have been used without permission. As a seller, you’ll need to provide proof that you fulfilled the order correctly.

Go to the Resolution Center in your PayPal account, open the case, and upload the required information.

What you provide depends on what you sold:

For physical goods:

• Proof of shipment: a receipt from the shipping company with the date, recipient’s address, and tracking number.
• Proof of delivery: online tracking showing the package was delivered to the address on the PayPal transaction. Signature may be required for high-value items.

For intangible goods or services:

• Confirmation of fulfillment: records showing the service was completed or the digital item was provided (e.g., delivery confirmation email, system logs, download history, or screenshots from your platform).
• Proof of communication: any messages or emails with the buyer confirming they received the service or access.

After you submit your documents, PayPal will review the case.

If you meet the requirements for Seller Protection, you won’t have to refund the payment. If not, the payment may be reversed. PayPal will protect you from frivolous claims if you provide valid confirmation that you fulfilled the order correctly.

To reduce the chance of future disputes, always keep clear records of your shipments or service delivery, use secure methods for digital delivery, and save your documentation for at least 6 months.