Here's the bad news. Just because you sent the individual an email invoice does not mean they must pay it. Most likely you're dealing with a not so honest person. That's unfortunate as honest respectable people do pay their bills and often recommend your services to others. That's how it's supposed to work.
As for filing a claim, there's not much hope you will recover your loss. Per PayPal's User Agreement under the Protection for Sellers, items such as digital content and Services are not covered. You can try file a dispute despite this but, most likely PayPal won't take any action. Folks who use PayPal for Services usually get some if not all funds upfront first and often will have a service contract in place. Even if you have a signed contract for work, trying to collect through PayPal can be challenge to say the least. If you have to bring an attorney into the mix, you'll end up loosing even more money. Not so honest folks know this.
Just a suggestion, I would consider securing another Merchant Account for services. Check with your local banks. Some offer basic merchant accounts that allow you accept both Mastercard and Visa and their rates are competitive. This way get the customer's credit card info upfront for charging both a deposit and the final.
People opt to PayPal becasue they don't want to invest some money upfront. Depending on your business, this may work well but, for others, it can be a setup for unhappy campers.
Regards,
skier
