Disputes

Disputes are useful when a trade does not go as planned. When a dispute is started, a moderator will intervene to settle the trade.

Disputes should be started in any of the following cases:

  1. If you are buying bitcoins, have followed the vendor instructions, and paid the vendor, but the vendor refuses to release bitcoins.
  2. If you are a vendor and the buyer is not responding and locking up your bitcoins in escrow.
  3. If you are a vendor and the buyer refuses to pay you or follow your trade instructions and will not cancel the trade. To prevent this make sure to write CLEAR offer terms when you create your offer and CLEAR trade instructions.
  4. If the buyer of bitcoins forces you to release coins first, without payment confirmation or pretending that payment was made.
  5. If one of the parties impersonates the moderator, attempts to steal your Paxful account details, or in any other way violates the Terms of Service.

A dispute can be started 3 hours after the trade begins except for the following cases:

  1. If the trade has been marked as paid within 5 minutes, then a dispute can be started within 30 minutes (the wait is lowered because in these cases it is most likely a coin locker). This helps sellers to get their bitcoins back to their wallet from so-called “coin-lockers” and won’t hinder sales any longer.

Follow the below steps to start and win a dispute:

  1. Click Dispute.
  2. Please provide a clear reason for the dispute for the moderators from the list of reasons. Please explain in complete sentences and as clear as possible what happened.
    Here are the following dispute options:
    Bitcoin seller
    Coinlocker - buyer has marked trade as paid but is unresponsive and inactive.
    Payment issue - buyer is active, has made an attempt to pay, but there are issues with the payment.
    Other - any other reason.
    Bitcoin buyer
    Unresponsive vendor - you have made the payment but bitcoin seller is unresponsive.
    Payment issue - you have made the payment, seller is responsive but states that something is wrong with the payment process, refuses to release btc.
    Other - any other reason.
  3. Please don’t flood the chat with dialogue or it will hold up the moderator.
  4. Wait for a moderator to join the dispute for investigation.
  5. Provide as much evidence as you can get, such as:
    • Proof of payment (transaction receipt, a screenshot of payment, video proof)
    • Proof of ownership (transaction receipt, receipt from the store of the gift cards, online receipt,
    • Operation screenshots or video recording.
    • Phone call recording of a conversation with 3rd parties customer support.
    • Additional proof requested by the moderators’ team.
  6. The dispute will be investigated by the Paxful moderator team and a decision will be made according to evidence provided by both parties. Paxful moderators resolve disputes by evaluating trade terms, offer instructions, evidence of payment, trade chat interaction, user reputation, past trading history, as well as data submitted and or collected in accordance with the Privacy Policy.

What to do if you lose a dispute:

If you lose a dispute, it could be for several reasons. Usually, it’s for these two reasons:

  • You were not able to provide clear reasons and evidence as requested by the moderator
  • Provided evidence is not enough

We also check both of your trading history and if you were able to follow the trade instructions or offer terms of the previous trades. Once a decision has been made, this means the investigation has already been finalized.

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