I'm a programmer who sells scripts on a third party website for little amount of money, I make about $20 - $30 because I sell these scripts for very low prices and the community is very small. About a month ago, I received a chargeback disbute from a customer. Said that he never made the purchase, this happened with several other users on the aforementioned third party site. This is a seriously problem in the community that I sell scripts to, on occasion someone mass buys scripts, refunds all the scripts, and then distrubutes the scripts for free on another site illegally without saying a word.
I provided as much information that I could to paypal, and a month later I was slapped with a $20 chargeback fee for disputing a $5 purchase. I'm furious about that, but knowing how things work there is no way in **bleep** I'm going to get that $20 fee revoked so I have to comply. I just really want to know what I did wrong in this process, the offical reason that it did not go through was "This transaction was not marked as eligible for Seller Protection." and that I did not provide the proper documentation, but I was told by the third party service that all I needed to do was to tell them that it was digital goods. Either they were wrong, or I did something wrong and it's likely that I did something wrong.
I'm just wondering what possibly went wrong in this case. I'm wondering if I did not have the right account, what documents I should've sent, what other information I should've provided.
