A buyer opened a dispute saying that they received an empty package and they felt I committed fraud. I know they are lying so when I checked the tracking, it still is in transit. I escalated the dispute and provided this information. Do I have a chance to win this? I don't get a lot of disputes so I don't know how this works.
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In my experience when a customer opened a case saying he received an "empty box" eBay refunded the buyer. I did not have to pay for it. Hopefully the same thing will happen for you
Oh I'm not sure but I imagine they'll do the same. Can it be the buyer opened the dispute on the wrong transaction since it's stil in transit? If you really want to know 100% there's always the option to call pp and ask what they will do in this situation
Provide paypal with thorough details to back up your argument. If the buyer gets a refund you might have to let your postage service provider know and ask for compensation.
Um... I would call Paypal immediatly and ask them to put notations on your account stating EXACTLY what you said.
If it shows in transit and they are already claiming it is empty then MAYBE you have a chance. Its almost impossible to prove they are lying unless you get creative and I won't go into specifics on that.
If the buyer actually knows how to scam, your screwed. Best thing to do is call and hope for the best....and document everything.
Can I win this? 
