According to PayPal policies for seller protection you must provide online tracking number with a devliery service such as USPS to prove delivery. Obviously, you cannot do that with a virtual item; therefore, you have no seller protection and you will automatically loose a non-delivery dispute. Click on the "legal agreements" at the bottom of the page to review all polcies. PayPal is not a good selling venue for virtual goods. You do so at your own risk.
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