Pretty much, and if your avg payment is rather low you could end up owing PayPal money as you don’t just pay for the refund of the order, but you have to pay ad

Pretty much, and if your avg payment is rather low you could end up owing PayPal money as you don’t just pay for the refund of the order, but you have to pay additional charges for the chargeback. Let’s say your avg payment is $15, one chargeback means that not only have you lost the payment from the customer who charged back but as you now also owe the chargeback fee you technically lost the payment on a sale which wasn’t charged back. Edit: just a quick note. Chargebacks are different than “PayPal Claims”, chargebacks are initiated by the card issuer, claims are initiated by the customer in the PayPal interface, so claims cost less than chargebacks, but PayPal will still ding your account if you get too many of them. Edit the second: the 180 day hold is to cover not only chargebacks (which generally have a shorter period the customer can start one) but also PayPals own “protection program” claims which is 180 days iirc.