Once upon a time, PayPal disputes amounted to less than 1% of all transactions. It wasn’t really necessary or desirable to have a procedure to handle your side of the dispute.
In fact, in our business, we used to simply refund them and inform them that they weren’t welcome to make any purchases in the future.
The economic downturn and other factors have sent PayPal disputes through the roof for many businesses though. Our own current rate is over 6%. We have customer who is experiencing a 26% PayPal dispute rate and/or chargeback rate.
This all started in October of 2008 right when the stock market crashed. … Read the rest