NewNo plan feeNo plan fee. Just 2.9% + $0.30 per card sale, and signing up is free.Try now →

PayPal · Chargeback reason codes

PayPal "Credit not processed" dispute: what it means and how to win

Checked

A PayPal Credit Not Processed dispute (reason CREDIT_NOT_PROCESSED) means the buyer says a refund or credit they were owed was never processed, for example after a return or a cancellation. It opens as a claim, and you have 10 days to respond. The strongest answer is the refund ID showing the money already went back; otherwise explain why no refund is due under the policy the buyer accepted. Seller Protection does not cover it.

Category
Refund not received (Stripe category: credit not processed)
Time limit to respond
10 days from when the dispute is opened; no reply means the case closes in the buyer's favour if it is escalated
Typical evidence
Refund ID, or your refund policy and why no credit is due
Can it be prevented?
Yes: refund promptly when you agree to one, and tell the buyer when it is sent
Who usually wins
The seller with proof the refund was sent; the buyer when a promised refund is missing

What PlatformDTC does

PlatformDTC records every PayPal dispute on the order from PayPal's webhook and an hourly re-check, and when a case reaches the claim or chargeback stage it can stop the subscription behind that payment (with auto-cancel on chargebacks switched on). You answer PayPal disputes in PayPal's Resolution Center. Refunds you issue are tracked on the same order, so the refund ID and date are at hand when you answer.

What it means

The buyer says they returned the item, cancelled, or were promised a refund, and the credit never reached them.

Why customers file it

A refund was promised but not issued, it was issued but the buyer has not seen it yet, the return was never received, or the buyer expects more than your policy allows.

Evidence that wins

Send the items that answer the bank's exact question. Each one should be dated and tied to this order.

  • The PayPal refund ID and date (PROOF_OF_REFUND), even if the refund was made outside PayPal
  • Your return or cancellation policy as shown before purchase
  • Proof the returned item never arrived, or arrived used or incomplete
  • Messages with the buyer about the refund

How to prevent it

  • Refund as soon as a return is received or a cancellation is accepted
  • Email the buyer when the refund is sent, with the amount
  • Publish a clear return and refund policy and link it from checkout

For developers

In the PayPal Disputes API (GET /v1/customer/disputes/{id}) this case has reason CREDIT_NOT_PROCESSED. dispute_life_cycle_stage is INQUIRY, CHARGEBACK (PayPal's own claim stage, not a card chargeback), PRE_ARBITRATION or ARBITRATION, and dispute_channel is INTERNAL for a PayPal case or EXTERNAL when the buyer went to their card issuer.

Read seller_response_due_date for the deadline: if you do not respond by then, the dispute closes in the buyer's favour. Evidence files can be JPG, GIF, PNG or PDF, under 10 MB each and 50 MB per case. Evidence types: PROOF_OF_REFUND or OTHER (for example a credit-due explanation).

Frequently asked questions

What if I already refunded?
Send the refund ID as PROOF_OF_REFUND. A refund made outside PayPal also counts if you can show it.
Is there a fee?
In the US PayPal charges a $15 dispute fee (or $30 at the high-volume rate) after a claim or chargeback is decided, but not for inquiries that are never escalated, cases settled with the buyer, cases covered by Seller Protection or cases decided in your favour.

Sources

Related

Payments library