Facing possible Account Limitation on 3 chargebacks from hijacked account

[MentalCrash]

As the title says, one of my costumers sent three chargebacks back in July 3rd, I of course contacted him right away on the case since the goods have already been provided, I'm a digital artist, the three items where three illustration drawn during this month and june.

The customer informed me his account had been hijacked (I can of course provided the contact info to an admin here when necessary), he told me he'd look into it and make sure the chargebacks wouldn't go through.

But, as it turns out, the first one of the three did go through today, and not only did it withdraw the total amount of the claim, I also got a 20 USD penalization fee.

Looking into the notification email I got from paypal about the resolution it states "Transaction for Digital Goods are not protected." which I find baffling since I'm being penalized even though I delivered the goods and I'm in contact with the customer, I fear the other two cases will go through with the same result, meaning I'd most likely face an Account Limitation.

I of course contacted the customer again today, demanding an explanation, he sent me money from a different account to cover the chargeback and penalization costs (I can put any admin who may look into this case in contact with the customer's both emails).

Can I get some help from a non-automated source? I've been in constant contact with the customer and I may end up facing a penalization on this account which is my livelihood.

[Teslafan101]

accepting Paypal payment for digital goods is not a good idea.

[kernowlass]

@MentalCrash 

A chargeback is not a paypal dispute, it is done directly via the buyers credit card issuer as they must have 'funded' their paypal payment that way.

The card issuer and not Paypal make any decisions and all Paypal do is pass on any information on your behalf.

If the card issuer finds in favour of their client then they are refunded AND you foot the card companies processing fee ie $20.

However IF you were covered by Paypals seller protection policy then you would have been reimbursed.

Unfortunately Paypals seller protection does not cover virtual or digital items so sadly you had no seller protection.

Very risky field to sell in and I personally would not use Paypal for those types of sales.

[MentalCrash]

@kernowlass 

The other two cases went through today, once again against me, I can deal with the fact I'm being charged back for digital goods by simply no longer accepting commissioned works from that customer (even if it wasn't directly his fault, but he's vulnerable to account hijacking).

What irks me is that I know have three closed cases on my paypal account where it's stated I was chargedback for non delivery, my account hasn't been locked this time but in the eventuality of a similar case happening in the future, I'm prone to have to face an Account Limitation since from Paypal's perspective I'd have a "History" of non delivery.

Could I get a proper intervention where someone gets to talk with both me and the customer to see we've been in constant communication?