Similar to an RFI, a PayPal Dispute is a payment inquiry that cannot be won or lost. PayPal facilitates a chat forum for the seller and buyer to work out a resolution, and all information entered at this stage is visible to the buyer.
Reach encourages merchants to draft a direct response or update that can be passed along to the buyer. PayPal allows the merchant a partial refund offer or full refund as a dispute response, which can be requested by the merchant in response to the dispute notification.
A dispute remains open for 20 calendar days, and closes automatically if it is not escalated to a PayPal Claim by the buyer.
The buyer can escalate the dispute at any time to a PayPal Claim (with an additional 10 calendar day period for the merchant to provide additional evidence). PayPal representatives will review the case and allocate the funds to the winning party at the claim stage.