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How can a seller recover funds when a chargeback occurs?

April 26, 2017chargeback funds occurs recover seller

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How can a seller recover funds when a chargeback occurs?

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In many cases, when a chargeback occurs, the money that is subject to the chargeback is deducted from PayPal. In turn, PayPal places a temporary hold on the same amount in the seller’s PayPal balance (the funds are frozen). The seller and PayPal can work together to dispute the chargeback with the buyer’s credit card company. While the chargeback is being disputed, PayPal will debit the seller’s account for the amount in question. If PayPal and the seller ultimately win the chargeback dispute, the credit card company will reimburse PayPal for the chargeback, and PayPal will transfer the recovered funds back to the seller. Depending on the credit card company involved, the process may take up to 75 days.