Well I am a buyer of virtual goods and I can say without a doubt that the seller has more power in these type of transactions. The burden of proof, according to Paypal, is on the buyer. Even so, unless the seller specifically responds that they did not deliver the item, then that is the only way for a buyer to get a refund. If the seller doesn't even respond, Paypal does nothing. As sellers of virtual goods who plan to continue to use Paypal, you all should come up with some way to protect both the buyer and the seller or not use Paypal, because this is just a ripoff waiting to happen.
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