So I know what you guys are thinking. PayPal doesn't protect against in-game items. But it seems that as of 13th April 2020, they updated their policy to introduce Seller Protection for intangibles including digital items (https://www.paypal.com/uk/smarthelp/article/what-is-the-seller-protection-policy-and-what-items-aren...). It clearly states "For all eligible transactions made on or after April 13th, 2020, Seller Protection will be extended to intangible items such as travel, ticketing, services and digital goods. With PayPal Seller Protection, you may be covered for the full amount of all eligible transactions."
Now I sold some in-game digital items to a few buyers over eBay. I obviously delivered the digital goods to the buyers and recorded the entire process. A week later they both opened a case with eBay stating their accounts were compromised but eBay chose not to protect them as digital goods aren't covered under eBay buyer protection. However, now they have both filed a chargeback with PayPal and PayPal has automatically deducted the funds from my account (making my available balance negative) and in an email sent to me have claimed that "£XYZ has now been debited from your PayPal account for the following reason(s): Intangible goods or services are not covered under Seller Protection." Which is an absolute lie based on PayPal's own policy I have linked above. I have provided proof as well of the transactions as well as the positive eBay feedback left to no avail.
Also, when both transactions were originally made I specifically received an email from PayPal stating the transactions were covered under PayPal seller protection. I find it baffling that PayPal did not cover the costs of the chargeback as their own website states "If the transaction is protected by Seller Protection Policy, PayPal will cover the amount of the chargeback and waive the chargeback fee.". So now my account is in negative balance and the phone support automatically will not pick up due to COVID-19 measures and the chat support keeps reiterating and copy+pasting the same things over and over again.
So my questions are as follows:
Should I put money into my PayPal balance to stop it from being negative so they don't lock or close my account?
What are the next steps I should take to ensure that I actually get covered by the Seller Protection that I am entitled to?
Foolish of me to think PayPal would actually act based on their policies and I should have never sold digital goods but I was tricked by PayPal stating they now cover intangible good purchases with Seller Protection.
Thank you for reading my rant/issue and thanks in advance for any help! It means a lot.
