Digital Download Code Sold on eBay, Buyer claims it was unauthorized

[Prairie_Wind]

I sold two unused digital download codes for an Xbox ONE game on eBay via two separate transactions to the same buyer. The buyer paid via PayPal.  I uploaded pictures of the codes on eBay, one picture with each transaction.  The buyer confirmed receipt and that both codes worked.  Less than 24 hours later, the buyer claimed that it was an unauthorized purchase and opened a dispute.  I provided documentation of the email interactions with the buyer and evidence that I had uploaded/emailed the codes via eBay.  PayPal has sided with the buyer and says that my transaction does not meet the criteria for seller protection because I did not ship the item to the address on the account and I do not have a tracking code/receipt.  This was a digital item!  There is nothing to ship.  This seems like a very out-dated assumption, that every purchase involves a physical item that will be shipped.  I acted in good faith and provided the merchandise within 24-hours of purchase and have proof from the buyer's eBay account that I did so.  What recourse does a seller have if a buyer can simply claim that the purchase was "unauthorized"? 

I can't figure out where to go within the PayPal system proper with this concern, as everything seems to be geared toward helping the buyer, not the seller.

I rarely sell on eBay.  This was simply an unused Christmas gift.  How is the seller to know that the buyer is a fraud?  I'm not a big-time seller and am very disappointed that PayPal has apparently simply believed the buyer and given him his money back.  At the very least, perhaps they could have agreed to split it with me.  I did absolutely nothing wrong and now I'm out over $100.

Thanks in advance to anyone who may have advice for me. 

[kernowlass]

@Prairie_Wind

There is no paypal seller protection for virtual / digital items, you can sell them but at your own risk. 

[Prairie_Wind]

Is this explicitly stated somewhere?  Again, I would like to encourage PayPal to re-think this policy.  I have proof that I delivered what I sold.  Why is there no protection for the seller?  I think I'll be looking for another venue for exchanging funds with strangers.  Hopefully there is one out there that goes after fraudulent buyers rather than sticking it to the seller. 

[kernowlass]

@Prairie_Wind

Yes, if you take the time to actually read paypals seller protection policy before you start to sell 

Basic requirements

To be eligible for PayPal’s Seller Protection, you must meet all of the following requirements:

• The primary address for your PayPal account must be in the United States.
• The item must be a physical, tangible good that can be shipped.
• You must ship the item to the shipping address on the transaction details page in your PayPal account for the transaction.  If you originally ship the item to the recipient's shipping address on the transaction details page but the item is later redirected to a different address, you will not be eligible for PayPal Seller Protection. We therefore recommend not using a shipping service that is arranged by the buyer, so that you will be able to provide valid proof of shipping and delivery.
• You must respond to PayPal's requests for documentation and other information in a timely manner as requested in our email correspondence with you or in our correspondence with you through the Resolution Center. If you do not respond to PayPal’s request for documentation and other information in the time requested, you may not be eligible for Seller Protection.
• If the sale involves pre-ordered or made-to-order goods, you must ship within the timeframe you specified in the listing. Otherwise, it is recommended that you ship all items within 7 days after receipt of payment.

[BigCap]

I know this is a little time after you posted this message but i've just been scammed in the last few weeks in the exact same way!

Sold a digital xbox code for £49.99, sent via ebay message and the buyer redeemed the code and then claimed it wasn't him accessing his account.

PayPal raised a dispute on his behalf and despite uploading screenshots clearly showing me providing the goods I sold and he bought they favoured the buyer and just closed the case without any comms or explanation! After calling them they advised that I raise an appeal against the decision and I was amazed to find that the appeal had also just been closed again a few days later without any comms or explanation as to why!?...  From reading the policies on both sites and the posts from so many people who have been scammed in this way it's clear I was just a gullible seller but that doesn't excuse the appalling customer care from PayPal! Not once did anyone at PayPal tell me I am not covered with protection for selling digital content and why did their customer services advise I raise an appear if that was the case! Training required it seems!!

Then they call me asking for a payment to bring my account up to date! It's a case of bring my account up to date or it will go to a debt collector!

Unbelievable. I've been robbed but no-one is interested. "Here you are Mr Robber have your cash back from this gullable fool!"

I actually bought a code off someone on ebay with the money I got from my sale of my code in the same manner. They messaged it across to me instantly. If I was a crook I could simple ask paypal to give me my money back and leave the seller out of pocket but we are not all crooks!!

LESSON - DONT SELL DIGITAL CODES ON EBAY AS YOUR NOT PROTECTED AND PAYPAL'S CUSTOMER SERVICE SUCKS!