Paypal is just a total nightmare to use for sellers even if dealing with physical goods and you have shipping proof. If the buyer reverses charges with the bank or credit card company, Paypal instantly rules in favor of the fraudlent buyer. In the case of virtual goods, Paypal will always **bleep** the seller. I have yet to have a case ruled in my favor. At this point, it's just not worth doing business one ebay/paypal for virtual goods. There are too many ways for fraudulent buyers and hacked accounts to **bleep** the seller. I'm waiting for the next class action lawsuit or settlement with state AG's so maybe I can recover 1% of my losses back from Paypal.
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