Paypal Seller Dispute Fee

Heads up, we're fully transitioning to Depop Payments in the US & UK from October 23, 2023 - check out the Help Centre article here to find out more about this.


PayPal has introduced a 'Dispute Fee'. This has been in place from 9th November 2020 in the US and 16th December 2020 in the UK.


What does this mean?

As a seller, if you are unresponsive to a PayPal dispute or have a PayPal dispute escalated to PayPal for a resolution, you will be charged this fee automatically.

Due to this, it's really important that you are communicating with your buyers and staying on top of any disputes which are opened against you. 


How Much Is it?

This fee will be £12 in the UK and $15 in the US. If your Disputes Ratio is 1.5% or more and you had more than 100 sales transactions in the previous three full calendar months the fee will rise to £24.00 / $30.00


What Does it Cover?

This will be on all disputes including 'Item not received’ and ‘Item not as described’, excluding ‘unauthorised transactions’ that are reported direct to PayPal. Sales less that £24 / $30 are also excluded.


Where Can I Get More Information?

If you have any more questions around this, please contact Paypal directly via the ‘Contact Us’ button once logged in to your PayPal account, as they will have full visibility over the specifics of your account and are best placed to advise you on your specific circumstances.

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