What is a chargeback?
A chargeback is the dispute of a charge made to a financial institution. Financial institutions include banks, credit card companies, and PayPal, and usually pertain to the original payment method.
Following the dispute, the card company or PayPal informs Etsy of the chargeback and may also request more information, such as transaction information, proof of delivery, and proof of refund. Etsy must respond with this requested information within a specified timeframe.
Below are the most common types of chargebacks:
- Fraud - This is when the credit card owner reports they did not make or authorize a transaction. This may happen when a credit card number is used without permission.
- Non-Delivery - This is when a buyer successfully makes a purchase but doesn’t receive the item(s) purchased.
- Not as Described - In this case, a purchase is made but the buyer receives an item(s) that is either different from what was listed on Etsy or from what the buyer thought they were purchasing.
- Return - A buyer can request a chargeback if they’re not satisfied with the item(s) purchased and received. This could be for a variety of reasons, including damage.
Can I open a case on Etsy if I’ve filed a chargeback?
If you open a case on Etsy after a chargeback is filed with your card company or PayPal, it will be closed by our Case Mediation team. This is because a buyer can only use one method of dispute resolution against sellers on Etsy.
Who do I contact for information about my chargeback?
Although Etsy provides financial institutions with requested information, Etsy does not make the final decision regarding chargebacks.
If a chargeback has been filed with a card company or PayPal, Etsy cannot issue a refund for the transaction. This option is disabled to prevent a duplicate credit, leaving the refund to the discretion of the card provider or PayPal. Additionally, if a refund is issued, Etsy can’t provide you with an estimated timeframe for when you’ll receive the funds.
We recommend contacting your card provider or PayPal directly for information about the chargeback. Below is contact information for common financial institutions:
Will Etsy notify the seller that I filed a chargeback?
For transactions made through Etsy Payments, in some instances we may need to contact the seller directly for information relating to a chargeback. Etsy will not reach out to the seller if payment wasn’t processed through Etsy Payments.
How will I know when the chargeback is complete?
Etsy will be given a timeframe to respond to the chargeback. This is typically a period of 30 to 45 days. Once the chargeback has been resolved, Etsy will provide the necessary information to your card or PayPal. The financial institution will then provide you with further information.