How to get a refund from PayPal for an item not received

If you've paid for an item using PayPal and it never arrived, you're not out of luck. PayPal offers a robust Buyer Protection program designed to help you get your money back in these situations. This guide walks you through the exact steps to file a claim and secure your refund.

Published by Reclaim, run by Corey Musa, Founder·Facts and sources checked 2026-09-28·LinkedIn·Built by COM Computing

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Your rights

Your right to a refund for an item not received when paying via PayPal is covered by the **PayPal Buyer Protection Policy**. This is a contractual agreement between you and PayPal, not a statutory right like the Consumer Rights Act. It allows you to open a dispute if an eligible item you purchased doesn't arrive or is significantly not as described. PayPal acts as a mediator, investigating your claim and, if valid, refunding your purchase price plus original shipping costs. However, you do not qualify for a refund under Purchase Protection if the seller has provided valid proof of shipment or delivery.

Step by step

1**Contact the seller through the PayPal Resolution Center.** Before opening a formal dispute, message the seller directly within the Resolution Center. Explain the issue and ask for a resolution, such as a refund or reshipment. Keep detailed records of all communication.
2**Open a dispute if the issue is not resolved.** If the seller does not respond or resolve the issue, log into your PayPal account and open a formal dispute in the Resolution Center. Select 'Item not received' as the reason. You and the seller then have 20 days to work out the issue.
3**Provide all requested information to PayPal.** During the dispute phase, provide all details PayPal requests, including the transaction ID, item specifics, and any communication you've had with the seller. Respond promptly to any information requests from PayPal.
4**Escalate the dispute to a claim.** If you and the seller cannot resolve the issue within 20 days of opening the dispute, you must escalate it to a claim for reimbursement. If you do not escalate within this timeframe, the dispute will automatically close. PayPal will then review the case and make a decision.
5**Consider the Financial Ombudsman Service if needed.** If you are not satisfied with PayPal's final decision, you can complain to the Financial Ombudsman Service. They typically expect a response within 15 days for payment services complaints. You usually have 6 months from PayPal's final response letter to refer your complaint to FOS.

What they'll say, and your comeback

“It's on its way, just delayed. Please wait longer.”

Comeback, PayPal's Buyer Protection has specific time limits for opening disputes and escalating claims. I need to adhere to these to protect my purchase. If you cannot provide valid tracking showing delivery, I must proceed with the claim.

“I've already shipped it. It's not my fault if the shipping company lost it.”

Comeback, As the seller, you are responsible for ensuring the item is delivered. PayPal requires sellers to provide valid proof of delivery, including tracking that shows the item was delivered to my address.

“You need to contact the shipping company yourself to track it down.”

Comeback, My contract is with you, the seller, not the shipping company. It is your responsibility to liaise with your chosen courier regarding any delivery issues or lost parcels.

What actually happens

In practice, most PayPal Item Not Received claims are resolved by contacting the seller directly through the Resolution Center. If this doesn't work, opening a dispute and escalating it to a claim is the next step. PayPal's Purchase Protection covers the full purchase price and original shipping costs. The process involves a 20-day window for you and the seller to resolve the dispute, followed by another 20-day window to escalate it to a claim if needed. If you miss the escalation deadline, the dispute closes automatically. While PayPal reviews the claim, there is no set timeframe for their decision. If PayPal's final decision is unsatisfactory, you can complain to the Financial Ombudsman Service, who typically expects a response within 15 days for payment services complaints. You have 6 months from PayPal's final response to refer your complaint to FOS.

FAQ

What is the time limit for opening a dispute with PayPal?

You must open a dispute within 180 days of the date of your purchase. After opening a dispute, you then have 20 days to escalate it to a claim if the issue isn't resolved.

What if the seller provides fake tracking information?

If the tracking information is invalid, shows delivery to a different address, or is otherwise fraudulent, communicate this clearly within your PayPal dispute. PayPal will investigate the evidence provided by both parties when you escalate the dispute to a claim. Be aware that if the seller provides valid proof of shipment or delivery, you may not qualify for a refund under Purchase Protection.

What if I am not satisfied with PayPal's decision?

If you are unhappy with PayPal's final decision, you can complain to the Financial Ombudsman Service (FOS). Most businesses have up to 8 weeks to consider a complaint, but payment services complaints can have a 15-day response period. You usually need to bring a complaint to FOS within 6 months of PayPal's final response letter.

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Sources

A self-serve tool, not a law firm. General information, not legal advice. Last researched 2026-09-28.