We have a customer that ordered a product on our site, but then cancelled the following day. We informed him we would issue a refund, but he issued a chargeback before we could issue a refund.
We now need to resolve the dispute in PayPal and were looking at accepting liability and being done with this. However, I am curious if there are there any negatives associated with accepting liability for a dispute? Will our account be flagged in any way? Are there any additional charges?