This is why dealing with virtual items is risky and PayPal is not a good venue for such. PayPal requires tracking to show delivery; since tracking cannot be included with digital sales, sellers lose automatically on non-delivery claims. Some sellers, however, are a little more astute and mail a tracking letter when a virtual item is sold. This tracking number is all that PayPal requires; PayPal can't verify envelope contents. But, if you know and undertand the risks your losses should be less. Just make sure you understand the polcies and the risks. This was an expensive learning experience.
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