In that case they have failed in their duty of care towards a seller. Paypal should not keep the money in a one way open situation like they do. Its plain lazyness at best but more like gross negligence on their part for not putting in simple protection. Also the situation would not have occured if paypal hadn't held the funds 'for up to 21 days' to protect the buyer. This is a mess that needs sorting. Instead of people rallying round paypal policy and throwing it in peoples faces, why dont they admit there is a big problem that could be simply solved. This has nothing to do with the fact that digital goods are not covered by seller protection, this is about the fact that the money was exchanged for goods that the buyer recieved. That money was my property not paypals, paypal had recieved a hansom fee for the transaction, yet in the end the buyer basically stole the money from me and paypal let them. To put this another way Paypal are basically storing sellers money in an open safe, a safe they are being paid to keep locked. I am definatly going to take legal advice on this and put a case forward. Or at least appeal to Paypal to change how they do things. Digital goods are here to stay. Ebay and Paypal should either stop their sales or sort this mess out.
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