How to Retract a Payment on PayPal

Paypal makes it easy to buy products and send payment online. While it’s best known as a method of payment for eBay items, it also works on other websites. As a buyer, you have the option to retract a payment you made for an item. The best way to retract a payment on Paypal is to do a chargeback.

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Step

Decide exactly why you want to retract a payment on Paypal. Most buyers retract a payment because the item arrived in poor condition or the description of the item didn’t match the actual piece. In some cases, you’ll want to retract the payment because the seller never sent you the item at all.

Step

Open a dispute with Paypal by opening the transaction name and clicking File A Dispute. Paypal contacts the seller, giving them a specified amount of time to answer to the charges. If the seller doesn’t respond in enough time, the money is automatically credited back to your account.

Step

Contact your credit card company and request a chargeback. The way a chargeback works is that your credit card company retracts the Paypal payment and credits the money back to your credit card account. Your card contacts Paypal first to get the details of the account.

Step

Follow through with the emails sent by Paypal because the website allows you to initiate a chargeback and dispute at the same time. The emails ask why you want to retract your payment, what your response to the seller is and it may take several weeks for the dispute to settle.

Step

Check your account for details about the transaction and the final decision. If Paypal determines that you were right, the company takes the money from the seller and deposits it back in your account. You’ll receive an email from either Paypal or your credit card when the payment is retracted.