Digital Product : Item Not Delivered Dispute
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Have a customer who bought a digital product, have log files to show he downloaded the product (linked to their PayPal transaction number and their IP), have emails saying he downloaded the product.
The customer says he never installed the product because after download they read the details about the product online and changed his mind! Actually first he made out he was too much of a newbie at using websites to follow the instructions, then changed to it wasn't what he expected, but still not installed it. Obvious BS.
Despite offering to guide him through the install process and even do part of it for him he has started a dispute for non delivery which doesn't give a reasonable option for sellers to prove a digital product was downloaded.
What's my options as can't provide a tracking number as it's not a shipped product (don't have the buyers address if I wanted to send the product on CD or something)?
I'm not worried about refunding one order (though there is the principle involved), but this side of my business just picked up (over 200 orders in 7 days, before it was ~10 orders a week, so not a big deal), if it continues as is I'll be sending over £250,000 worth of orders through PayPal for this one product (cost £25) a year and only offer refunds when there's a fault or problem I can't fix with the customer. That will be over 10,000 orders a year through PayPal and if it's 1 order in 200 that do this that's 52 claims like this a year!
Never had a dispute go all the way, always been able to sort it out with the customer, but this one is adamant he wants a refund despite downloading the product (basically ripping me off).
All I've found in the PayPal help files is I could start a fraudulent dispute claim after the case is closed, which sound like the buyer gets his money back and little else happens.
David

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The best thing to do is to send an e-mail to PayPal customer service explaining the situation and respond to the claim stating for tracking that the item was a digital download. The claim should be voided off then, just be sure to respond as the claim might time out in the buyers favour if it is not responded to (after 10 days).
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I've followed your advice and will post here what happens.
Thanks for the quick response.
David
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Got this email from PayPal (took less than an hour from submitting the info and the email you suggested) for a response.
Resolution of Buyer Complaint Case No. ########
We have concluded our investigation of the Buyer Complaint for the transaction detailed below. We were unable to resolve this complaint because the item purchased was not eligible for coverage under our Money Back Guarantee programme. Because it is ineligible, we have closed our investigation.
The case is still open in my account, does than mean it's up to me and the buyer to find a resolution of the issue?
Been with PayPal for years and though not had hundreds of orders like I'm getting now, I've never had this problem before (nothing more important than good customer support).
David
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Digitial products are not covered by any PayPal resolution, only physical goods are covered.

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