PayPal · Chargeback reason codes
PayPal "Unauthorized transaction" dispute: what it means and how to win
Checked
A PayPal Unauthorized transaction dispute (reason UNAUTHORISED) means the PayPal account holder says they did not authorize the payment and did not benefit from it. It skips the inquiry stage and opens as a claim. Sellers are protected when the payment was made on PayPal's hosted checkout, marked eligible for Seller Protection, and you can prove you shipped to the transaction address no later than two days after PayPal told you about the dispute.
- Category
- Fraud (Stripe category: fraudulent)
- Time limit for the buyer
- 60 days after PayPal provided the statement showing the payment
- 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
- Tracking to the transaction address, delivery signature, refund ID
- Can it be prevented?
- Partly: use PayPal-hosted checkout and ship only to the confirmed address
- Who usually wins
- The seller when Seller Protection applies; otherwise the account holder
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. If an unauthorized case becomes a claim or chargeback, PlatformDTC records it on the order and can stop the subscription behind it so the same account is not billed again.
What it means
The account holder told PayPal that money left their account without their permission. PayPal's User Agreement treats a payment as unauthorized only when the account holder did not authorize it and did not benefit from it; giving someone your login does not count.
Unauthorized cases filed directly with PayPal are not charged the standard dispute fee.
Why customers file it
A PayPal account was taken over, a family member used it, or the buyer does not recognise your business name on their PayPal activity and assumes fraud.
Evidence that wins
Send the items that answer the bank's exact question. Each one should be dated and tied to this order.
- Proof of shipment to the address shown on the PayPal Transaction Details page, shipped no later than two days after PayPal notified you
- Carrier name and tracking number (PROOF_OF_FULFILLMENT)
- Proof of delivery with signature or receipt, where available
- For digital goods: records showing the item was sent or accessed
- If you refunded: the refund ID
How to prevent it
- Keep checkout on PayPal's hosted flow and the current PayPal Checkout version, which Seller Protection requires
- Check the Transaction Details page shows the payment as eligible before you ship
- Do not ship to an address different from the one on the transaction
- Use a business name customers recognise in PayPal activity
For developers
In the PayPal Disputes API (GET /v1/customer/disputes/{id}) this case has reason UNAUTHORISED. 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. Unauthorized cases start in the claim stage (dispute_life_cycle_stage CHARGEBACK). Evidence types: PROOF_OF_FULFILLMENT, PROOF_OF_REFUND or OTHER.
Frequently asked questions
- Is this the same as a card chargeback?
- No. This is a PayPal claim decided by PayPal. If the buyer paid with a card and went to their card issuer instead, it arrives as an external chargeback that the issuer decides.
- Does Seller Protection cover card chargebacks for fraud?
- Yes, PayPal Seller Protection also covers a successful card chargeback where the buyer did not authorize the card-funded payment, if the transaction meets all its requirements.
Sources
- Dispute reasons and evidence — PayPal Developer
- Use the Disputes API — PayPal Developer
- PayPal User Agreement — PayPal
- PayPal Seller Protection — PayPal
Related
- EXTERNAL — The buyer paid through PayPal with a card and disputed it with their card issuer instead.
- MERCHANDISE_OR_SERVICE_NOT_RECEIVED — The buyer says the order never arrived. Valid tracking that shows delivery usually wins it.
- 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.
- CANCELED_RECURRING_BILLING — The buyer says they were charged after cancelling a subscription or recurring payment.