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I have lost a chargeback just now even though I provided proof about the transaction was completed. I want to appeal but it kept saying "You did not enter a Tracking Number. Please enter a Tracking Number and then click Save." when I tried to appeal.
The thing that I sold is a virtual good, " Game server store items ". It's a minecraft server rank. The buyer made the chargeback "item not received" and the options only gave me tracking number, offer refund etc which I can never be able to answer correctly because these things are not included in my store as because its a virtual item. I have provided explanations etc and in the end I lost it. I do not find this fair as 50% of people that used "item not received" way to chargeback and all of them won.
A chargeback means that an account holders has bypassed paypals dispute process and done a chargeback directly via their card issuer.
In that situation the card issuer makes all the decisions and not paypal.
However you would not lose out as long as you met ALL the requirements of seller protection, but as you have no seller protection for virtual / digital sales then you would not be compensated. You can sell those items but at your own risk unfortunately.