Solidgate pre-dispute alerts for PayPal

For many businesses, PayPal is more than just a payment method—it’s a key revenue stream with unmatched global reach. Yet, as merchants scale, they face increasing challenges with PayPal’s risk management system. Higher transaction volumes often bring a surge in chargeback requests, and navigating PayPal’s intricate risk controls becomes progressively harder. 

Designed to prevent fraud and protect both parties, these risk metrics can lead to unexpected issues like sudden account limitations, higher dispute fees (High Volume Dispute Fee), and frozen funds—outcomes that can disrupt growth and add complexity to managing chargebacks.

Challenges merchants face when working with PayPal

• Limited coverage of pre-chargeback alerts: PayPal’s pre-chargeback alerts, designed to flag early disputes, lack full reach. Particularly for Visa transactions, merchants miss crucial early alerts, exposing them to unexpected chargebacks. This lack of visibility means merchants are reacting to chargebacks instead of stopping them early.
• Opaque and incomplete transaction details: Even with external scheme alerts, PayPal hides customer payment data, making it difficult to match alerts to transactions. This guesswork hampers real-time dispute resolution and prevents effective action.
• Rising chargeback ratios from missed early intervention: Without full visibility into pre-dispute alerts, merchants miss chances to act early, allowing disputes to escalate to chargebacks. This impacts chargeback ratios, risks penalty fees, and may even place merchants in monitoring programs, restricting cash flow and business operations.
• High operational costs due to manual processes: Limited insights and automation force many merchants to manage PayPal chargebacks manually, consuming resources that could drive growth. For smaller or fast-growing businesses, this inefficiency becomes a significant strain.
• High costs due to increased dispute fees: To manage the dispute process, PayPal charges merchants a Dispute Fee for claims on transactions made via PayPal accounts or PayPal Checkout as a Guest. This fee, which varies based on dispute rate and volume, applies both to direct claims and chargebacks. If the dispute rate is 1.5% or higher, merchants face a High Volume Dispute Fee, adding yet another cost layer to an already complex chargeback process.

For a long time, merchants struggled to find a solution to this problem. At Solidgate, we are the first to have found a solution to address these pain points and solve the PayPal chargeback problem for merchants processing through our payment orchestration getaway. 

How Solidgate pre-dispute alerts solve PayPal chargebacks

Solidgate has developed an industry-first solution that offers full visibility into pre-dispute alerts across all major card providers. For the first time, merchants have access to both Mastercard and Visa pre-dispute alerts for transactions processed through PayPal wallets—a breakthrough that even PayPal has not achieved. 

Here is what our solution helps you with:

Full pre-dispute alert coverage across major card providers

With Solidgate, you get full pre-dispute alert coverage for Visa, Mastercard, and more, giving you unmatched visibility. This comprehensive insight lets you proactively manage chargebacks, cut down on escalations, and keep a healthier risk profile as your business scales.

Real-time monitoring and transaction matching

Our system syncs PayPal alerts with your original transaction data, enabling real-time matching of alerts to orders. As alerts appear, you can act immediately to prevent them from becoming chargebacks, keeping your chargeback ratio low and avoiding unnecessary costs.

Fully automated chargeback prevention

Solidgate’s automation handles alerts on your behalf, eliminating the need for manual intervention. This means you can wave goodbye to time-consuming workflows and focus your team’s efforts on high-impact tasks while chargeback prevention runs smoothly in the background.

Data-driven insights for strategic decision-making

With actionable, real-time data, you can refine refund policies, optimize customer service, and improve chargeback strategies. Use these insights to build a proactive approach to risk, preventing chargebacks while enhancing customer trust and satisfaction.

Key benefits of Solidgate pre-chargeback alerts for PayPal:

• Lower merchant dispute fees.
• No over-refunding.
• Lower external chargebacks on your PayPal accounts.
• Protect growth by keeping chargeback-related risks in check.
• Avoid penalties by staying below VDMP and VFMP thresholds (VAMP in the future).
• Optimize refund policies and customer support workflows for higher efficiency.
• Boost customer lifetime value with a trusted PayPal experience.

Solidgate’s pre-dispute alert solution is designed to give you full control over PayPal chargebacks. With full alert coverage, real-time transaction insights, and automated handling, you can address disputes before they become chargebacks. This means fewer disruptions, stronger risk management, and more time for what matters—growing your business.

Beyond chargeback prevention, our platform helps you recover high-value transactions with smart dispute defense and chargeback management. Set filters by transaction amount to choose which disputes to fight and which to refund, streamlining your approach. For disputes that advance past pre-dispute, Solidgate’s AI-powered dispute representment tool—supporting both cards and alternative payments like PayPal—gives you the power to defend your revenue at every stage.