Should I refund a payment proactively if there’s a dispute brewing?
It depends on the situation — sometimes a proactive refund resolves things faster and avoids a chargeback altogether, especially for a small, clearly justified amount. Use judgment based on the specific dispute.
From the guide Payment Disputes & Chargebacks.
The dispute fee
The payment processor charges a fixed fee for every dispute, and a smaller one for every returned bank payment. These are charged to the account that received the payment, itemized on your payments screen with what caused them, and deducted from your next payout before it leaves (Terms of Service § 9A). If a fee is listed as recorded but not yet being deducted, it is not taken from your payouts until that changes, and the payments screen says which.
Read the whole guide: Payment Disputes & Chargebacks