Services can be tricky, unfortunately. It's usually not PayPal making the decision. It's the card issuing bank (when the buyer funds the PayPal payment with a credit card.) If they file a dispute with the card company, and you cannot provide tracking showing delivered goods (which you can't do with a service, of course) then they will side with the buyer almost always. When they side with the buyer, they take the money from PayPal, so PayPal has to take it from you. Unfortunately, the same rules apply to Seller Protection. I'm dealing with a similar situation myself where somebody paid to play in a table tennis tournament we hosted. They played their events, and even walked away with prize money (cash). Then filed a dispute with PayPal and got all of their entry fees back because they claimed "item not received". We provided two separate third-party sources proving that they did indeed play in all of their events, but the case was awarded to the buyer and there's nothing we can do about it. It sucks, but it's a part of accepting payments this way, and it's not just PayPal. The same thing could happen no matter who we take payments with.
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