Hi, I run a automated online shop selling digital software. Once a customer places an order and the payment has been confirmed a email containing the product download and license is automatically emailed to the customer.
The next day I wake up to a email from the customer saying that I have somehow stolen their money and they will be marking it as fraudulent to paypal. I go to the paypal resolution center and I Clicked the "I'll offer a refund" button. Now the case is "Under review". I email the customer back saying that someone placed the order using their account and I have told paypal to refund them since I can always just remotely disable the product license. I also told the customer to change their password.
2 Days later I get a email back from the customer. The customer told me paypal told them the following "Thank you for reporting this case. After reviewing your case, we found that this transaction wasn't unauthorised and hence wasn't eligible for Buyer Protection." The customer also states that the case is closed for them but it's still open for me.
Now I'm confused as the dispute still shows "Under review". The customer told me and I quote: "Mate Paypal isn’t going to refund it so you need too I don’t have kids there’s just my wife and myself, this is clearly fraudulent. Please refund my money immediately. I want my money back."
When it comes to anything like this I usually believe people. I tend to have a good heart and just refund them however now since the customer says paypal denied their request I'm left wondering.
How does paypal check if it was unauthorized? Do they match the every day use IP address to the one the was used when the purchase was made?
