PayPal Dispute vs Claim: Difference and Comparison

The terms dispute and the 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.

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.

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 professionally.

Key Takeaways

  1. A PayPal dispute initiates communication between the buyer and seller to resolve a transaction issue, while a claim escalates the dispute to PayPal for investigation.
  2. Buyers can open a dispute within 180 days of the transaction, while claims must be filed within 20 days of opening the dispute.
  3. PayPal may refund the buyer if the claim is decided in their favor, but disputes can be resolved directly between the buyer and seller without involving PayPal.

PayPal Dispute vs Claim

In a Paypal dispute process, a disagreement arises from the buyer and the seller due to order misplacement, wrong delivery or miscommunication of the price. This process settles the dispute between the buyer and seller. Paypal claim occurs when a buyer or seller experiences transactional issues or a prolonged dispute. It is solved within 30 days. 

Quiche vs Souffle 2023 05 21T183219.006

A PayPal dispute situation occurs when a disagreement occurs between involved persons (buyer and seller), but not necessarily regarding contractual requirements, and 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 specific 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 to settle into a valid conclusion.

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

Also Read:  New Jersey Manufacturers Insurance vs GEICO: Difference and Comparison

Comparison Table

Parameters of ComparisonPayPal DisputePayPal Claim
General MeaningA dispute occurs when two parties are in the chaos that occurred due to product misplacement or wrong delivery, or SNAD situation.When either a buyer or a seller faces a transactional or money displacement issue, it can be claimed by either of the two parties.
Reporting MethodOne can file a dispute report on the Resolution Center of the 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.

The situation is negotiable.
Can be reported by both parties, but a claim involves money or severe cases like ghosted sellers or a severe miscommunication.
It 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 (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 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 for 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 claims 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 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. When solving a dispute, PayPal acts as a mediator between the buyer and seller.

Also Read:  Secured vs Unsecured Bond: Difference and Comparison

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 purchasers believe 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 depends on whether they require further data and how fast both parties react to our inquiries.

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

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

In these kinds of cases, the account holder is 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 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 takes up to 20 days to solve completely, whereas a claim can extend from 14 to 30 days to completely resolve.

Last Updated : 13 July, 2023

dot 1
One request?

I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️

19 thoughts on “PayPal Dispute vs Claim: Difference and Comparison”

  1. The content here is very well-organized and clearly explains the nuances of a PayPal dispute and claim. It’s a valuable resource for PayPal users.

    • The article’s detailed comparison table is particularly useful for understanding the specific differences between a dispute and a claim.

  2. The process for filing a dispute or claim is well-explained, making it much easier to understand the steps involved for both buyers and sellers.

  3. This article provides a clear and comprehensive explanation of the differences between a PayPal dispute and a claim. It definitely helps clear up any confusion.

  4. I’ve been using PayPal for years and I never knew there was such a clear distinction between a dispute and a claim. The article is extremely helpful and enlightening.

  5. While I appreciate the explanations in this article, I believe the process for filing a claim could be addressed in more detail. It’s a significant aspect of PayPal’s procedure and requires more discussion.

    • I see where you’re coming from, Nreid. A more in-depth exploration of the claiming process would definitely provide a more comprehensive understanding for readers.

    • I understand your point, Nreid. Indeed, diving deeper into the specifics of filing a claim would enhance the article’s coverage.

  6. This article provides a wealth of information on the topic. However, a more in-depth look into the investigative process during a claim would enhance the coverage.

    • I see your point, Abigail68. Further exploration of the investigative phase during a claim would certainly add depth to the article.

    • I agree with you, Abigail68. A deeper dive into the investigative process would be beneficial for readers seeking a comprehensive understanding.

  7. This post clarifies the difference between a PayPal dispute and a claim very effectively. The key takeaways are particularly useful for understanding the process.


Leave a Comment

Want to save this article for later? Click the heart in the bottom right corner to save to your own articles box!