PayPal Chargebacks - How best to handle?

[Curtis1960]

Hi All,

We use PayPal to handle our credit card sales. We have disabled the auto feed and now need to know how best to handle chargebacks. Many thanks.

[QFMathew]

Hi @Curtis1960

If the chargeback has been issued and is confirmed (e.g. it’s not just a hold, the money has been refunded to the customer), you should treat it as a refund and tag it to the original invoice as such.

If it’s the full amount of an invoice, you can click ‘Tag me!’ next to the transaction on your banking screen, and select ‘Refund to customer’

If it’s just a partial refund (you may for example, create one invoice for a months worth of transactions), then you will need to go to the invoice itself and create a credit note and follow the steps from there. This will create a new transaction, but as it’s a duplicate you can just delete the original from your bank account.

You may also find this post interesting.

I hope that makes sense, but please let us know if you need further help.