Illegal Chargebacks and Breaking of my ToS.

[Stoniest]

(Just a quick word saying that I would've used paypals messenger service, but currently they're under Covid-19 restrictions, so it made it almost impossible to get in-contact with them with the times I am free/awake.)

So, I run a community, that has a donation store, where we allow players and people within our community to send money to help keep the community alive financially, We give them things in returned for these sums of money, such as in-game items, in-game ranks and tags, ect, all of this stuff is non-tangible goods/digital goods.

Now, in communities such as my one, we do come across the odd individual, that'll abuse paypals chargeback system, which I in turn thought we'd be okay when I first started up my community, as we had a fully written up Terms of Service that all people that are paying for anything on our store, has to sign before making a purchase using their steam account and paypal, which'll the steam account will have a few Unique ID's linked to them, which are easy to find out and match them to the accounts.

So, a lot of the people that chargeback, are in breach of our Terms of Service, which is in place to protect us and our community from people blatantly abusing the Paypal system, so I would've thought that paypal would take into account that when they filled disputes, I'd put the ToS in the dispute, as well as all the proof I can provide of them obtaining the things that they had expected to obtain from paying to keep the community going, obviously all the things they get are digital goods and most of it is granted automatically by our systems, but it turns out, that paypal don't actually check the dispute and is run by a machine that doesn't understand what a Terms of Service is.

Let me elaborate about paypal not understanding on a recent dispute that I physically couldn't fight for my own safety due to what it was asking and the reason why the person that has bought the stuff (and received them) was later banned from all our communities platforms and blacklisted from our donation store and how this case put me in danger:

An individual in our community had paid for the Gold VIP package, they would receive the Gold VIP rank in-game (automatically), a sum of in-game cash (automatically) and 3 loot crates (which is given manually by our senior staff team and is logged by us when done so), all these things were given to them, but this individual started to do malicious things within our community and put the community itself into danger, these things include; attempting to hack our database, DDoS(distributed denial-of-service) attack threats and giving a malicious IP tracker link to members of the community a few weeks later after receiving his digital goods, which of course, so the safety of our community and the individuals within it, we had banned him permanently from all our communities platforms, in which he started a dispute on paypal over his item, saying "He didn't receive it" but the case was labeled "goods not as expected" or something along those lines, due to this being a illegal chargeback and in breach of our Terms of Service, I escalated this straight to paypal to deal with, giving them all the information I could, as well as screenshots of the logging on our end, a screen shot of our terms of service and all the other information we could provide proving that all had been given to him and what he was doing was in breach of our terms of service that they had to sign before making any payments, I waited a little while, and they had responded with basically a standard copy & paste of what they said before "didn't get the items", which is a straight up lie, which once he responded, paypal was saying I had to respond by the 4th of August to deal with the case, I looked at the options on the response, majority of it was types of refunds, which I didn't want to do as they were illegal charging back and breaking our terms of service, so I looked at the only option that denied the refund and it was requesting I gave more information (which I couldn't do as I had given them everything already), but that wasn't the part I had a problem with, at the bottom, it was requiring me to give the tracking address, seems as these are digital goods and I run the community from my home, the tracking address would be my home address, which due to this individual threatening to DDoS attack people and the community, giving out malicious IP trackers and trying to hack our database, I really didn't want to provide that information, as these individual is a danger to our community and the people in it, by doing what paypal was requesting of me, any person would see how dangerous for me that would've been for me to provide that information, so I had no choice but to refund them, even though it was breaking my Terms of service, in fear of paypal closing my account for not responding or putting a black mark on it or the malicious individual obtaining my home address.

Please, can anyone help me out here, 'cause it seems like paypal doesn't care about the protections we have in place and other legal documentations such as a Terms of Service to help protect our community against harmful individuals such as this person I've mentions, this is also not the first time, this is one of many instances of malicious charging back and breaking of our Terms of Service and I feel like paypal doesn't protect or care at all or that the automated system for dealing with disputes that are written by humans are incorrectly handled.

[A3XR_D4G]

Hi,

I believe you need to develop a feature within your system which allows you to track when a customer is downloading your digital goods and also where they are downloading their digital good from (IP address).

This information proves to PayPal that you did indeed deliver a digital item. You are a little lucky they didn't chargeback for an "unauthorised transaction" because there is absolutely no way to fight those off with digital items. However, as the customer chargedback and said they never received the item, I suggest asking PayPal whether they can open the case up again. If you have the IP log and date and time of the download available for this individual, provide these. You will also need to have images of your system proving the date and time of purchase though.