Unauthorised activity claim - Buyer has used the digital codes

[IVSHINOBIVI]

I sold some xbox live codes I no longer needed.

The buyer paid within a couple of minutes, I checked the codes around 15 mins after and they had been redeemed.

Within 5 mins of the codes being used the buyer had opened a case stating it wasn't them who made the purchase. 

What would the process for this normally be? Obviously I am now out of pocket and they have a free item. PayPal of course found in the buyers favour, even though I provided screenshot of the email as proof the codes were sent.

Surely the process is not as clear cut as this?

I have complained to PayPal, the response was classic "We have reviewed your case and found it was in the buyers favour" yes... This is why I was contacting you....

Any advice on this would be appreciated, as it seems there is 0 protection for sellers if the buyer simply claims it wasn't them. 

[sharpiemarker]

@IVSHINOBIVI 

Who you sold to might not be who paid you and can exploit the limitations of PayPal buyer/seller protection program. If is for you to know what those limitations are so you can avoid being ripped off. Sellers do have protection if they followed the procedure and understand the limitations as these programs are not a guarantee, warranty, or insurance. PayPal never claims this. You sell digital goods and licenses at your own risk.

Always read the 11. Seller Protection Programme to ensure it is appropriate way to accept payment for your transaction beforehand.

Can and did you provide proof of delivery or proof of postage:

Proof of Delivery for intangible items and services means any compelling evidence (as determined by PayPal) to show the sale was fulfilled, including but not limited to the following information:

1. The date the item or service was provided.

1. The recipient’s address (for instance, email/IP) where applicable.

Also, depending on the item involved, it may not be eligible for seller protection:

11.10 What are examples of items/transactions/cases that are not eligible for PayPal seller protection?

1. For:
   1. Payment Recipients with their registered address outside the UK: digital goods and licences for digital content.
   2. Payment Recipients with their registered address in the UK: intangible items (including digital goods and licences for digital content) and services.
      Where PayPal in its own discretion may make certain intangible items (including digital goods and licences for digital content) and/or services eligible from time to time, unless otherwise agreed in writing with PayPal, the following will always remain ineligible:
      1. Items equivalent to cash (including, without limitation, stored value items such as gift cards and pre-paid cards).
      2. Payments made in respect of financial products and investments.
      3. Donations.
2. Items that you deliver (or are picked up) in person (except for items for which you received payment through the PayPal Location Based Payments Functionality).
3. Transactions processed otherwise than through the buyer’s PayPal account. For example, if the payment was received as a direct card payment (including through Zong, Website Payment Pro, Virtual Terminal and PayPal Here) or as a PayPal guest checkout transaction, then it is not eligible for coverage.
4. Claims, Chargebacks and Reversals for Significantly Not as Described and/ or claims filed directly with eBay.
5. PayPal Business Payments.
6. Payments made in respect of gold (whether in physical form or in exchange-traded form).
7. PayPal Mass Payment transactions