WHEN you sign up with Paypal,did you read about withholding and seller protection?
your buyer can claim item not received and get his money back in 180 days ,you have no proof from a commercial carrier like USPS,FED EXP or UPS ,DHL that you have delivered the item,so Paypal has to take the money from you and refund him.
They give you 21 days figure if he does not complain in 21 days,you can have your money when in fact both Paypal and his credit card issuer allows 180 days.
If you read this forum and Ebay forum,many buyers take advantage the virtual goods have no physical delivery so they will file item not received and get their freebie.
you said they are using it now,but there is no proof whatever they are using come from you,Paypal robot does not read email or pictures,hard cold fact DC showing delivered.
However,there are exceptions,if you provide a service like building a website,and contract or details showing what is to be done and a link to the website.Paypal would take all these into consideration.
Generally speaking,virtual/ditital goods,services will lose a dispute if you cannot prove delivery ,not good if you are a service provider,massuer,hair stylist,plumber,handyman,
go to Paypal AND read what is not protected.
BTW,when you receive Paypal email notice YOU GET CASH,did you notice if your tem is whole or partially eligible for protection,go find that email/
