The Myths and Facts Behind PayPal Chargeback

The Myths and Facts Behind PayPal Chargeback
The Myths and Facts Behind PayPal Chargeback

Digitalization is pro-intelligence as it has made people’s life easy in every sense. Now, we have the privilege to transfer money online. There are several online service providers and applications that are responsible for channelizing payments and refunds. One of the applications and globally known online payment service companies is PayPal. In this blog, we cover myths and facts behind PayPal Chargeback. 

The table of content for this blog are:

  • What is PayPal?
  • What is PayPal Chargeback?
  • How PayPal works for its users?
  • What are the myths and facts about PayPal?

What is PayPal?

PayPal is an online payment platform that allows users to transfer money securely and gives the privilege of accessing required monetary functions at their fingertips.  It was founded in the year 1998 and it is one of the most well-accepted platforms worldwide. 

How PayPal Works for its users?

Here are the five steps that individuals and businesses can use to operate PayPal and benefit from all its features. 

  1. One common step is to sign up. For that, the user is required to provide their name, email address, and password. Once you enter that you have to finish some formalities such as linking a bank account, credit card, or debit card as a method of payment. 
  2. The second step is to send money. For that, the user should:
  • First, log in to their account
  • Then select “Send & Request”
  • Enter the recipient’s email address or mobile number
  • Enter the Amount
  • Confirm the transaction
  1. The receiver only receives the money if he/she is also registered on the application and the respective sender has their email address or number to proceed with the payment.
  2. PayPal is a large-scale online transfer platform with a high footfall of daily traffic. It means you can also use it while purchasing items from a different website. If you want to make PayPal the successful payment option while shopping then choose it at the time of checkout, then login into your PayPal account to complete the transaction.
  3. Users can also withdraw the funds from their linked bank account or card. For that, you need to select ‘withdraw’ and then choose the payment method. 

Is PayPal a company scam?

Many times, users get misled if the PayPal company is involved in scams. However, this is a rumor, and PayPal as a company never acts as a swindler. Moreover, Scammers are the ones who are demeaning the value of the company by hacking customer data. They use techniques such as phishing email Paypal scams, texts, and calls to mislead users by asking them for bank details. 

They attach fake links to the email, and once the user opens it and fills up the form, fraudsters will use their identity and run away with their hard-earned money. It is known as identity theft. 

What is the PayPal Chargeback feature?

PayPal Chargeback is a feature that allows buyers to dispute a transaction and request a refund from PayPal. As mentioned earlier, many big business houses and E-commerce retail applications are using PayPal as their monetary partner. PayPal holds a huge customer base. 

For Example, say a customer has purchased an item from a website, and for certain reasons, the delivery gets delayed. Maybe the product is not up to the mark or a different product is delivered. There are many other reasons that could lead to a dispute. Hence, PayPal Chargeback is introduced where you can register your complaint and request for refund. 

Users should know how to use this feature. Here are some steps that could help; 

Buyers can initiate disputes for the trouble they face. Once the complaint is registered PayPal investigates the case, checks all the points, and connects the dots. If the buyer is right, funds are refunded but if the buyer is performing an unethical act, it means some scams are aligned with it. After accurately checking everything PayPal makes a decision based on the documents presented. 

What are the Myths and Facts about PayPal Chargeback?

PayPal Chargeback feature is introduced to ensure customers’ safety and security. PayPal is a protected website and there is nothing to worry about. Although, there are some misconceptions and myths about PayPal Chargeback. They are as under:

#Myth1: Chargebacks are always a fraud

#Fact 1: PayPal Chargeback is a legit feature. There are a number of reasons such as when the product is not what the buyer has ordered, not up to the mark, and unauthorized transactions. Fraud could be a reason for a chargeback but it is not the only reason. 

#Myth 2: PayPal always takes the side of buyers and not sellers

#Fact 2: PayPal never gives weightage to a single party. It has respect for both its buyers and sellers. After investigating both sides and listening to both parties the chargeback is processed. If the seller can provide a sufficient reason that the buyer’s claim is false, Paypal would definitely take the right party’s side. 

#Myth 3: Impacts sellers negatively

#Fact 3: Sellers keep complaining that buyers are always at the winning phase but that’s not true. PayPal first puts the transaction on hold and if they find that the seller is at the right spot they release the payment to them. 

#Myth 4: Chargeback is easy 

#Fact 4: Chargebacks are not easy at all. It is definitely for the buyer’s and seller’s comfort but it is a money matter that could take weeks and months. If anyone mistreats the process, PayPal can subject buyers to penalties or even account suspension. 

#Myth 5: Sellers cannot raise chargebacks

#Fact 5: Sellers can definitely raise the complaint and dispute their chargebacks. If they can provide legitimate proof and evidence, they can take advantage of chargebacks. 


After observing, people look out and build perceptions towards PayPal and its Chargeback – we have accumulated some myths and facts about the online payment platform. This was an informative blog post that hopefully helped our readers gain expertise on how PayPal works, and how it is user-friendly. In addition, we have also answered the most common and rumored question which is; PayPal’s involvement in scams. We hope that our readers will find it interesting. Stay tuned!