How to Prevent a PayPal Chargeback

1. Keep lines of communication open with your customers. Let them know when their packages ship and encourage them to contact you directly if they have a problem with their purchase. Try to resolve all customer complaints yourself to prevent PayPal chargebacks.
2. Upgrade your account at PayPal to a Business or Premier account it you currently have a Personal account. Only Business and Premier accounts are covered with the PayPal Seller's Protection Policy.
3. Review the Seller's Protection Policy at the PayPal site and familiarize yourself with the requirements for coverage.
4. Sell only to customers within the US, the UK and Canada. These are the only countries that are protected under the Sellers Protection Policy.
5. Ship packages through an approved shipping service, there is a list of them on the PayPal website. Always ship with a traceable online proof of delivery method. If shipping US Postal this means that all packages need to be 'Delivery Confirmed.'
6. Mail packages only to PayPal confirmed shipping addresses listed on the 'transaction detail' page of the payment. Packages must ship within seven days of receipt of payment to qualify for Sellers Protection.
7. Cooperate and communicate with PayPal if you are notified of a claim being filed. Communicating through the PayPal process can sometimes resolve the issue preventing the chargeback.