PayPal · Chargeback reason codes
PayPal "Item Not Received" dispute: what it means and how to win
Checked
A PayPal Item Not Received dispute (reason MERCHANDISE_OR_SERVICE_NOT_RECEIVED) means the buyer says the order never arrived. Buyers can open one within 180 days of paying. You have 10 days to respond. Online tracking that shows delivery to the address on the PayPal transaction usually wins it, because PayPal does not refund the buyer when the seller proves shipment or delivery. With proof of delivery it is also covered by PayPal Seller Protection.
- Category
- Item not received (Stripe category: product not received)
- Time limit for the buyer
- 180 days from payment; escalate to a claim within 20 days of opening
- 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
- Carrier name and tracking number showing delivery to the transaction address
- Can it be prevented?
- Mostly: ship to the address on the transaction, with tracking, and share tracking with PayPal
- Who usually wins
- The seller when tracking shows delivery to the address on the transaction; the buyer when there is none
What PlatformDTC does
PlatformDTC sends the carrier and tracking number to PayPal for every PayPal order as soon as it ships, whichever way it was fulfilled, and adds the destination carrier's own number when tracking identifies one, so PayPal can confirm delivery itself. Its records show the dispute on the order, and a subscription's first renewal waits until a week after the first parcel lands, so no one is billed again before the box arrives.
What it means
The buyer told PayPal they paid but never received the item or service. The case starts as an inquiry where you and the buyer can settle it; if the buyer escalates it within 20 days, it becomes a claim that PayPal decides, usually within 10 days.
The buyer can also skip PayPal and file a chargeback with their card issuer. Then the issuer decides under card network rules, and PayPal only passes your evidence along.
Why customers file it
The parcel is late, lost or stuck in customs, or it was delivered to a mailbox, porch or neighbour and the buyer did not see it. Some buyers open the case early instead of contacting the store. Some file it knowing the item did arrive.
Evidence that wins
Send the items that answer the bank's exact question. Each one should be dated and tied to this order.
- Carrier name and tracking number that can be checked online, with the ship date and a delivered status
- A delivery address on the tracking that matches the shipping address on the PayPal transaction (at least the city and state, or ZIP code)
- Proof of delivery with signature or receipt, where you have it
- For digital goods or services: system records showing the item was sent or accessed
- If you already refunded: the refund ID (PayPal accepts PROOF_OF_REFUND)
How to prevent it
Most Item Not Received cases are lost for lack of tracking, not because the buyer was right.
- Ship only to the address on the PayPal transaction; PayPal does not protect parcels redirected later
- Add tracking to every PayPal order and send it to PayPal, which also releases held funds sooner
- Ship within 7 days, as PayPal Seller Protection recommends
- Send the buyer the tracking link and answer "where is my order?" messages before they become disputes
For developers
In the PayPal Disputes API (GET /v1/customer/disputes/{id}) this case has reason MERCHANDISE_OR_SERVICE_NOT_RECEIVED. 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. Send tracking with evidence_type PROOF_OF_FULFILLMENT (carrier and tracking number) or a refund with PROOF_OF_REFUND.
Frequently asked questions
- Does Seller Protection cover Item Not Received?
- Yes, for eligible US sellers who meet the basic requirements and have proof of delivery: online tracking, ship date, delivered status and a delivery address matching the transaction. It does not cover Item Not Received cases the buyer filed as a card chargeback with their issuer.
- Is a tracking number enough?
- Proof of shipment stops a Purchase Protection refund, and proof of delivery is what Seller Protection asks for. Tracking that shows "delivered" to the transaction address covers both.
- 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
- Dispute reasons and evidence — PayPal Developer
- PayPal Purchase Protection — PayPal
- PayPal Seller Protection — PayPal
- How do I respond to Item Not Received and Significantly Not as Described disputes? — PayPal Help Center
- PayPal merchant fees — PayPal
Related
- MERCHANDISE_OR_SERVICE_NOT_AS_DESCRIBED — The buyer says the item is very different from your listing, damaged, fake or missing parts.
- EXTERNAL — The buyer paid through PayPal with a card and disputed it with their card issuer instead.
- UNAUTHORISED — The account holder says they did not make or allow the payment. Goes straight to a claim.
- CREDIT_NOT_PROCESSED — The buyer says a refund or credit they were promised never came through.
- DUPLICATE_TRANSACTION — The buyer says they were charged twice for the same purchase.
- INCORRECT_AMOUNT — The buyer says they were charged a different amount than agreed.
- PAYMENT_BY_OTHER_MEANS — The buyer says they paid for this purchase another way, so the PayPal charge is extra.