How to avoid fraudulent chargeback with Paypal to collect payment?

What is chargeback?

A chargeback is initiated when the customer contacts the issuing bank to request a payment reversal. Many of these chargebacks could be avoided. The more you know the proper procedures, the less likely you’ll run into issues that might result in a chargeback.

Reasons for chargebacks

Chargebacks arise for many reasons, but primarily for customer disputes and fraud:

Customer claims to have never received the goods as promised at the time of purchase;
Customer was shipped an item that was very different from the seller's description, or the item was damaged when the buyer received it; or
Customer claims they did not authorise the purchase, they did not make the purchase, or they were victims of identity or credit card theft.

How to avoid chargebacks?

There are several things you can do to prevent disputes and chargebacks from happening in the first place:

Provide contact information.

Buyers may not resort to a dispute or chargeback if they can talk to you about the issue. Provide an email address or phone number, or even call buyers in advance when you're selling higher-priced items.

Be responsive.

No one likes to wait. Respond quickly and professionally to all reasonable buyer inquiries.

Suggest Dispute Resolution.

If a customer tells you that they’re going to file a chargeback with their credit card company, ask them to open a dispute in the PayPal Resolution Center instead. This will give you and your buyer the chance to work things out.

Provide a clear return policy.

Make sure your return and refund policies are easy to find and understand.