A PayPal dispute happens when a customer questions a payment and asks PayPal to review it. While the case is open, PayPal investigates and decides whether the disputed amount stays with the seller or is returned to the buyer. This guide explains how that dispute flow appears in Synder and what to expect at each stage.
When to use this guide
Use this guide if:
- You use PayPal with Synder and want to understand how dispute transactions are handled.
- You want to know what happens while a dispute is still under review, and what gets synced once PayPal resolves it.
How Synder processes PayPal disputes
When a customer opens a PayPal dispute, Synder imports the dispute transaction with the status Pending. This means PayPal is still investigating, so Synder does not post the final accounting entries yet.
Once PayPal resolves the dispute, Synder syncs the resolved transaction. The accounting result depends on the outcome:
If the seller wins
Synder creates two accounting entries for the dispute: an Expense and a Deposit for the same amount. The two entries offset each other, so the dispute has no net financial impact on the books. The records remain visible as a history of the dispute against that sale.
If the buyer wins
Synder creates a Refund Receipt for the amount returned to the customer.
Example — Seller wins the dispute
- May 1, 2026: a customer opens a PayPal dispute for $100.00. Synder imports the dispute in Pending status. No accounting entries are created at this stage.
- May 12, 2026: PayPal resolves the dispute in the seller’s favor. Synder syncs the dispute as two final entries:
| Entry | Amount |
|---|---|
| Expense | $100.00 |
| Deposit | $100.00 |
The Expense records the $100.00 held by PayPal, and the Deposit reverses the same $100.00. The two cancel each other out, so the final impact on the books is $0.00.
If PayPal had instead resolved the dispute in the buyer’s favor, Synder would create a Refund Receipt for the disputed amount — in this example, $100.00.
How to check that the dispute was synced correctly
- Open Synder and locate the PayPal dispute transaction.
- Check the dispute status.
- If the dispute is still Pending, wait until PayPal resolves the case.
- Once the dispute is resolved, sync the transaction in Synder.
- Open the synced result in your accounting platform.
- If the seller won, confirm that Synder created an Expense and a Deposit for the same amount.
- If the buyer won, confirm that Synder created a Refund Receipt for the amount returned to the customer.
Troubleshooting
The dispute is still pending in Synder
Cause: PayPal has not resolved the case yet.
Resolution: wait until PayPal finishes its review, then check the dispute in Synder again. Synder will sync the final entries automatically once the resolution is available.
The synced result does not match the dispute outcome
Step 1: verify the final result directly in PayPal.
Step 2: compare it to what Synder created:
- Seller won → Synder should create an Expense and a Deposit for the same amount.
- Buyer won → Synder should create a Refund Receipt for the refunded amount.
If you see a different result in Synder, contact the Synder support team for help.
Important notes
- The final dispute entries use dates from the PayPal dispute activity, so they may appear on different dates than the original payment.
- Historical disputes from before Synder activation are not brought into your accounting records.
- The original payment and the dispute are synced as separate transactions.
For more information about PayPal integrations or other Synder features, visit our Help Center or reach out to the Synder team via online support chat or email.
