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Old 12-21-2009
PBX PBX is offline
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Exclamation Escalate or Close Naturally?

For those people who have merchant accounts with PayPal is it better to escalate a dispute to PayPal once the item shows delivered or to let it close out naturally after 20 day period? Nine out of ten times PayPal automatically closes these disputes instantly if tracking shows delivered after we escalate on our end.

We process about 900 or so transactions a month on one of our merchants accounts and average about 30 disputes/chargebacks in a single month (for the last 1+ year). Which by PayPal standards was "okay" from an account manager.

We were also given the following information as to what is acceptable from I guess someone in their Trust and Security department that had been monitoring our multiple accounts for "a few weeks" due to the amount of transactions we were process on a newer merchant account during the holiday season.

1% chargeback per month
5% refunds per month
3% complaints per month*

Based on monthly number of sales or number of dollars.

*(Complaints only count when a dispute is escalated to PayPal and NOT when a dispute is opened.)
Unfortunately my business partner spoke with them and forgot to ask about this. Any feedback would be greatly appreciated!

Last edited by PBX; 12-21-2009 at 09:53 PM.
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