Difference Between PayPal Dispute and Claim

The terms dispute and claim are mentioned by many users of e-wallets, especially PayPal, which is an internationally approved e-wallet application. This article will help you understand the meanings and usages of a claim and a dispute.


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However, users can still enquire about their products or amount via the following simple steps; if an order does not arrive or is not as advertised, a customer can file a grievance in their Resolution Center.

Well, hopefully with a descriptive table and some interesting facts and features about both the PayPal ‘friendly’ terms you will have no more confusion regarding what a PayPal dispute and claim mean in a professional manner.

PayPal Dispute vs Claim

The difference between PayPal claim and dispute is that in a dispute the buyer and seller come into a non-negotiable situation either in the product delivery or transaction error between the two whereas, a claim situation occurs when the seller sends a product which is not ordered or not expected by the buyer either because the product shown is different or the item gets misplaced for some reason. In the event of a dispute, the bidders have 20 days to communicate through the Resolution Center in order to resolve the issue.

PayPal Dispute vs Claim

A PayPal dispute situation occurs when a disagreement occurs between involved persons (buyer and seller), generally but not necessarily regarding contractual requirements, is referred to as a dispute.

In this situation usually, the problem is regarding the delivery of the product, a SNAD (Significantly Not As Described) situation, or the product simply did not reach the buyer for certain reasons.

Transactional and money regarding issues are not registered under the dispute section of PayPal.

Secondly comes the PayPal claim situation, here the scenario is regarding the transaction or delayed response to a dispute. A customer can file a claim against a seller or vice versa.

The case is then forwarded to the PayPal inquiry where the investigation takes place on behalf of both the seller and the buyer for settling into a valid conclusion.

A claim can be independently filed from the Resolution Center of PayPal website or application and it usually takes 14 to 30 days or more to get the situation handled properly.

Comparison Table

Parameters of ComparisonPayPal DisputePayPal Claim
General MeaningA dispute occurs when two parties are in a chaos that occurred due to product misplacement or wrong delivery or SNAD situation.When either a buyer or a seller faces a transactional issue or money displacement issue situation, it can be claimed by either of the two parties.
Reporting MethodOne can file a dispute report on the Resolution Center of PayPal application.A claim can either be filed by the buyer or seller.A claim can automatically occur when an unsolved dispute escalates for several days, 
SituationCan be reported by both the buyer and seller regarding product disagreement.

Situation is usually negotiable.
Can be reported by both the parties but a claim usually involves money or severe cases like ghosted sellers or a severe miscommunication.
Usually occurs when the situation is no longer negotiable.
Time Period20 days14 – 30 days
Causes1. SNAD
2. No delivery of the product
3. Miscommunication regarding the price
4. Transactional errors (usually not included)
1. Transactional issue
2. Inappropriate response by seller or buyer
3. The dispute that escalated for a long time.

What is PayPal Dispute?

A PayPal dispute situation arises when there is a misunderstanding between the parties involved (buyer and seller), which is usually but not always about contractual obligations.

Transactional and money-related concerns are not properly recorded in PayPal‘s dispute section.

The disputes are not severe and the only reason why a dispute is filed against a buyer or a seller is due to miscommunication or misinterpretation due to circumstances or human errors.

A customer may submit a dispute complaint about one of two reasons:

  • Not Received Product: The customer in this instance claims they purchased and paid for an item but never received it.
  • Significantly Different From What Was Described (SNAD): The purchaser is claiming that the product they received is substantially different from what they expected based on the vendor‘s representation in this sort of claim. For example, the customer may have requested a blue scarf but got a green scarf instead. The disputes can usually be solved in a few days or so by-product replacement or money return policies.

There is no investigation role played by PayPal during a dispute resolution since the only errors to be fixed are simple and negotiable. PayPal acts as a mediator between the buyer and seller when solving a dispute.

The dispute resolution procedure allows you to settle concerns as they rise to a claim. Working with the consumer to settle the disagreement is in the vendor’s best financial interest.

This is a seller’s chance to demonstrate excellent customer service by resolving a problem and preventing it from becoming more serious.

What is PayPal Claim?

The PayPal claim scenario, in this case, involves a purchase or a delayed response to a dispute. A consumer can submit a claim against a vendor, and the seller can file a claim against the customer.

The matter is subsequently submitted to the PayPal investigation cell, which investigates on behalf of both the supplier and the consumer to reach a legitimate decision.

During the 20 days, if a customer issue cannot be addressed, any side can elevate it to a claim. PayPal gets actively engaged at this stage and will make judgments based on the facts supplied.

If a purchaser believes their accounts have been used illegally, they can make a claim (without first filing a dispute). During the settlement agreement, PayPal may send an email to one or both parties requesting further information.

The time it would take PayPal to determine a claim’s result varies. It is contingent on whether they require further data and how fast both parties react to our inquiries.

PayPal generally makes a legitimate judgment within 14 days, although it might take up to 30 days in rare circumstances.

If a complaint is filed for an intrusion attempt to an unidentified account, it implies the buyer’s account has been compromised or stolen by hackers, and somebody has bought a product from the profile without their authorization.

In these kinds of cases, the account holder is usually advised to file a claim because the culprit is unknown, and PayPal steps in to provide a valid solution and account recovery.

Main Differences Between PayPal Dispute and Claim

  1. A PayPal Dispute is a negotiable situation whereas a PayPal claim is non-negotiable and requires PayPal’s personnel intervention in the situation.
  2. In a dispute, PayPal acts as a mediator whereas, in a claim, PayPal acts as the investigating and decision-making body.
  3. A dispute can escalate to a claim but a claim cannot escalate to a dispute.
  4. A PayPal dispute usually occurs due to miscommunication or SNAD situations whereas a claim occurs when unauthorized transactions occur or SNAD and the wrong product is delivered.
  5. A dispute usually takes up to 20 days to solve completely whereas a claim can extend from 14 to 30 days to completely resolve.



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