Help with paypal dispute.

[LW92]

Hi, Looking for a bit of advice. Sold a digital code on eBay at the weekend and was in discussions with the buyer in regards to sending them the code. They asked me to message them the code rather than post it out, looking at this persons feedback they seem reputable and genuine. So, out of my own foolishness I sent them the code through EBay and low and behold around half an hour later, code has been claimed and the person is now saying they didn’t purchase the code, didn’t want it and now wanted a refund. I’ve been in discussions with eBay who told me to now raise this with PayPal, the PayPal dispute has already been awarded to the “scam” buyer. Now obviously with fees removed it meant I actually had to pay money into my account to balance it back to 0. eBay have told me to appeal the dispute as I have evidence of the person asking me to send them the code through messages before the story changed. What are my chances of getting anywhere with PayPal in regards to this? Thanks

[sharpiemarker · Accepted solution]

@LW92 

The problem is that digital goods are not eligible for seller protection coverage. Should have stuck to your usual way of delivering the code by postal mail, if that was the intention. Always realize that who you sell to might not be the one who paid and if they try to negotiate and make you change your best practices that protect you, it's a sign. This is prime example why PayPal institutes the 21 day funds availability holds to ensure the funds are there in case a refund, chargeback, reversal happens. 

You can by all means attempt to appeal, and try your luck but keep your expectations low and you won't be disappointed. If they deny your appeal, prepare to zero out your balance.