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. 

Payment disputes can take the form of a chargeback or other type of dispute, such as a PayPal dispute. There are a number of reasons why a buyer might file a dispute, such as:

  • They didn't receive their item
  • They received an item that doesn’t match the description in your listing
  • They didn't recognize 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.

Responding to a payment dispute

When a payment 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 to help us respond to the dispute on your behalf.

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

  • Accept the dispute and the buyer receives the refund
  • Challenge the dispute, and provide evidence or additional information - for example, you have 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

While the final outcome is outside of eBay's control, we’ll submit any relevant information you provide about the dispute to the relevant 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.

Please note, there may be cases where eBay will challenge a dispute with the financial institution, despite how you choose to respond.

Tip
When you accept a payment dispute for an item not as described, you can request the buyer returns the item. Keep in mind that the outcome of the dispute is outside of eBay’s control, and we can’t force the buyer to return the item.

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

Seller protection and dispute fees

If a buyer files a payment dispute, and you're found to be responsible for the disputed amount, you'll be charged a $20 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. 

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 the 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 provided tracking information including the following:

  • A delivery status of 'delivered'
  • Date of delivery
  • Shipping address matching the address on the order
  • Signature confirmation, if the item costs $750 or more
 

 

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

Prior the 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 partially refunded – you previously issued a partial refund for an item that was returned to you opened, used, or damaged.

 

 

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

You provided tracking information including the following:

  • A delivery status of 'delivered'
  • Date of delivery
  • Shipping address matching the address on the order
  • Signature confirmation, if the item costs $750 or more
 

Transactions not eligible for protection

Items not covered under 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 (full list within the eBay Money Back Guarantee Policy). These items are 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 on items that cost $750 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

While the final outcome of a payment dispute outside of eBay’s control, we can still help by submitting information related to the dispute on your behalf.

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