What Does “PayPal Chargeback Received” Mean?
A PayPal chargeback received message means that a buyer has contacted their bank or card issuer to reverse a payment, instead of opening a dispute directly on PayPal.
When this happens, PayPal is required to pause the transaction and work with the bank to investigate the claim.
What Happens Immediately After a Chargeback Is Received?
When PayPal receives a chargeback:
- The disputed amount is temporarily deducted from your PayPal balance
- The transaction status changes to chargeback under review
- You are notified via email and the Resolution Center
- The buyer’s bank takes control of the decision
This process is handled by the card issuer, not PayPal alone.
Common Reasons Buyers File Chargebacks
Buyers usually file chargebacks for these reasons:
- Unauthorized transaction
- Item not received
- Item significantly not as described
- Duplicate or incorrect charge
- Forgot about the payment
Even legitimate transactions can sometimes be charged back.
Chargeback vs PayPal Dispute (Quick Comparison)
| Feature | PayPal Dispute | PayPal Chargeback |
|---|---|---|
| Started by | Buyer on PayPal | Buyer’s bank |
| Control | PayPal | Card issuer |
| Resolution speed | Faster | Slower |
| Seller protection | More flexible | Limited |
Chargebacks are usually harder to win than PayPal disputes.
What You Should Do After Receiving a Chargeback
Step 1: Open the Resolution Center
Check the chargeback details and deadline immediately.
Step 2: Submit Evidence
Provide:
- Proof of delivery
- Tracking number
- Invoice or receipt
- Buyer communication
- Product or service description
Step 3: Respond Before Deadline
Missing the response deadline almost guarantees a loss.
Step 4: Wait for Bank Decision
The card issuer reviews evidence from both sides and makes a final call.
How Long Does a PayPal Chargeback Take?
Chargebacks usually take 30 to 75 days, depending on the card network and bank. Some cases may take longer.
PayPal will update you once the bank reaches a decision.
What Happens If You Lose the Chargeback?
If the chargeback is decided in the buyer’s favor:
- The money is permanently taken from your account
- A chargeback fee may apply
- Your account risk level may increase
Repeated losses can lead to account limitations.
Can You Win a PayPal Chargeback?
Yes, especially if:
- The transaction was authorized
- You have confirmed delivery
- Your product description was accurate
- The buyer used the item or service
Winning depends heavily on documentation.
How to Reduce Future Chargebacks
- Use tracked shipping with signature confirmation
- Clearly describe products and policies
- Communicate promptly with buyers
- Keep transaction records
- Avoid high-risk buyers or regions
Prevention is always easier than recovery.
Conclusion
A PayPal chargeback received notice means the buyer has escalated the issue to their bank, temporarily reversing the payment while an investigation takes place. While chargebacks can feel serious, responding quickly with strong evidence gives you the best chance to recover your funds and protect your account.