When PayPal informs Adyen that a payment is disputed, we do not know to which seller on your marketplace this payment belongs. All we can do is inform you of the dispute, and let you review and defend the dispute on behalf of your seller. You can do this using the Adyen Disputes API<\/a> or your Customer Area<\/a>.<\/p>\n As a marketplace, you have to implement your own business logic to manage disputes on behalf of your sellers.<\/p>\n You have a limited number of days to respond to a dispute before it is lost in the shopper's favor. You can see the number of days remaining on the dispute details page. <\/p>\n When a shopper disputes a PayPal payment, the dispute can start either in the inquiry stage or the claim stage, depending on the reason code. If the dispute reason code is If you receive an RFI, you can:<\/p>\n Fully refund the payment. This creates a refund on Adyen's side.<\/p>\n<\/li>\n Fully accept the dispute. This creates a chargeback on Adyen's side.<\/p>\n<\/li>\n Make an offer to the shopper to partially accept the dispute. If the shopper accepts the offer and PayPal approves it, this creates a chargeback for the partial amount.<\/p>\n<\/li>\n Wait until the dispute expires and moves to the claim stage, so you can try to defend it. You cannot defend a PayPal dispute until it enters the claim stage.<\/p>\n<\/li>\n You have 20 days to respond to an RFI before the dispute escalates to the claim stage. It is also possible that the dispute moves to the claim stage because the shopper escalated the dispute to PayPal.<\/p>\n<\/li>\n<\/ul>\n If the seller and the shopper cannot reach a resolution within 20 days, either of them can escalate the dispute to PayPal. At this point, the dispute enters the claim stage. Adyen will send you a Notification of Chargeback. The PayPal chargeback flow for marketplaces is as follows:<\/p>\n If the dispute is in the inquiry stage, we send you a REQUEST_FOR_INFORMATION<\/a> webhook. Do the following:<\/p>\n Review the reason code of the dispute. For a PayPal dispute to begin as an inquiry\/RFI, the only possible dispute reason codes are as follows:<\/p>\nHow PayPal disputes work<\/h2>\n
\nWhen PayPal notifies us that a payment is disputed, we open a dispute corresponding to the PayPal dispute lifecycle stage. The dispute starts either with a Request for Information (RFI) in case of an inquiry stage dispute, or with a Notification of Chargeback (NoC) in case of a claim stage dispute.<\/p>\nInquiry stage - Request for Information<\/h3>\n
MERCHANDISE_OR_SERVICE_NOT_RECEIVED<\/code> or MERCHANDISE_OR_SERVICE_NOT_AS_DESCRIBED<\/code>, the dispute can start as an inquiry. Adyen will send you a Request for Information.
\nDuring this stage, the seller and the shopper can exchange messages and try to resolve the dispute without involving PayPal. The seller can accept the dispute and refund the shopper, or offer a partial refund.<\/p>\n\n
Claim stage - Notification of Chargeback<\/h3>\n
\nIf you receive an NoC, you can either accept the dispute (chargeback), or defend the dispute by uploading the relevant defense documents. When you receive an NoC, you have 10 days to respond before the dispute escalates to a chargeback.<\/p>\nOverview of the PayPal chargeback flow<\/h2>\n
RFI\/Inquiry stage:<\/h3>\n
\n
NoC\/Claim stage:<\/h3>\n
\n
![\"PayPal](\"\/user\/pages\/docs\/10.risk-management\/21.chargeback-guidelines\/paypal-chargebacks\/paypal-flow-updated.svg?decoding=auto&fetchpriority=auto\")
<\/p>\nRequest for Information<\/h2>\n
\nYou can also find the PayPal dispute notifications in your Customer Area under Revenue & risk<\/strong> > Disputes<\/strong> > Requests for Information<\/strong>.
\nThe dispute process starts, and we will report on the number of days you have left to respond before the dispute escalates and you receive a NoC.
\nWe recommend that you inform your seller that a dispute has been created and that they need to prepare their defense documents.<\/p>\n\n
![\"\"](\"https:\/\/docs.adyen.com\/user\/pages\/docs\/10.risk-management\/21.chargeback-guidelines\/paypal-chargebacks\/paypal-flow-updated.svg?decoding=auto&fetchpriority=auto\")
"}}