PayPal Favors The Buyer Every Time When they Scam

[Cavemantraining]

We have a clear no-refund policy on our website that buyers have to agree to. We sell digital products, so obviously there is no exchange or refund. This time someone double-scammed us and then lodged a case, we provided all communication to PayPal that shows the buyer received their item, which is always the reason they lodge the case.

OK, I've been ok with it, but now it's getting to the point where we have lost a lot of money over several years and it seems PayPal ALWAYS favors the buyer. There has not been one case where they gave a reason, communicated with us, or favored in our favor. It's a pretty clear-cut case, the terms they agree to do not allow a refund. The reason they lodge the case is saying they did not receive the item, but they did, and it's proven, so PayPal is in breach of protecting the seller and lack communication.

We have been working with Stripe as well, and have never ever run into this issue. The stripe option will now be moved to the top in our shops, and if this continues, I think it's time to phase PayPal.

My questions:

How can they get away with this?

What do they base their decision on?

How can I recoup the thousands from PayPal?

[kernowlass]

@Cavemantraining 

Read the section on seller protection for virtual items in paypal seller protection policy.

[Cavemantraining]

So, if I order a virtual item from anyone in the world, all I do is lodge a case and get my money back. 

[Cavemantraining]

Next time I won't even bother to reply to the case and just let it sit there, not wasting my time again.

[kernowlass]

@Cavemantraining 

*o.k*

[eric323]

Buyer here, Sorry for your loss in sales. They are digital sales. No products shipped. So basically, intellectual property. 

Part of me thinks that favoring the buyer is in interest of the buying/paypal community. Recently, I purchased a digital product, downloaded installed it and it didn't work. I requested support from the seller. They said they needed super admin access to my database/server/hosting account. I asked them for an alternative they didn't offer it. With that kind of access, they could easily download all of my customer data, install malware etc.. I paid $25 for that script. It wasn't worth the risk and not every person will take the same action I did. 

I asked for a refund, they denied it to me and I opened a case with PayPal. Still pending. So let's see if they always favor the buyer. 
It sucks to be a seller, it also sucks being a buyer. I lean to the side of the buyer maybe I'm biased but if you're selling digital products, you should walk a fine line. If there is a PayPal account that always requests refunds - sure flag them, warn them, limit the amount of refund requests. 

Finding repeat offenders should be possible. We have bad actors in the world. I think it falls on PayPal to police this and put security in place to flag this type of activity. At least give us a text message saying hey...something weird is happening. 
 

[Cavemantraining]

We sell books, courses, and videos. The buyer got what they paid for.

[kernowlass]

@eric323 

True, however paypal offers 'some' buyer and 'some' seller protection. There is always going to be a loser in the resolution centre. Sellers state paypal always favours buyer and vice versa.

At the end of the day we all need to read the buyer and seller protection policies and then risk assess our transactions.

With online buying and selling you always have to configure the odd sale gone wrong. If you get too many you need to review your modus operandi.

Good luck with your dispute.