PayPal - Is accepting liability bad?

Business
1

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?

2

No, this can’t hurt you as long as the customer is satisfied and fully refunded. You will get your paypal fees refunded as well so you won’t lose any money.

3

Thanks.

4

Make sure to double-check that you get your PayPal fees refunded AND that you are not assessed any chargeback penalties. But otherwise, as the other poster indicated, refunding should result in a neutral outcome for you.