Buyers purchasing intangible goods (such as digital goods) are now covered @ Paypal
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Buyers purchasing intangible goods (such as digital goods) are now covered @ Paypal

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Lead deal editor292
Lead deal editor
Refreshed 16th Apr 2019 (Posted 14th Feb 2019)
Hopefully will help a few of you!

If you purchase a code like tickets, e-codes, travel and so on, via selling sites and non-working, you'll now be able to put a claim in, before this wasn't covered and a lot of you lost your money.

PayPal is always looking for ways to make shopping safer. Buyers purchasing intangible goods (such as digital goods) and services can now be covered by Buyer Protection, in the same way as they are for physical items. If a buyer claims they haven’t received an eligible item or service or it was not as described, they can open a claim which PayPal will review. We want buyers to feel safe no matter what they’re buying.

This additional coverage gives your customers extra confidence when shopping for intangible goods (digital goods, event tickets and other intangible items) and services (such as travel). We expect your activity as a seller to benefit from this increase in buyer confidence.


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Retain proof of transactions.

You’ll need to respond to all claims. If a customer opens an Item Not Received or Significantly Not as Described claim for an intangible or a service, we’ll need evidence that the buyer received the goods or service, or benefited from the transaction, and that it was as you described it to be.


Supply appropriate documentation.

Provide as much relevant evidence as you can to support your response to claims. The more the better. For example, for sales of digital downloads you might provide proof that you sent the buyer a link and that the buyer accessed the download including dates and times.



Other links you may find helpful:


Paypal - Free Returns up to £15, up to 12 times per year - Thanks @womble86
Paypal Buy and Try, Free returns up to 12 clothing items - Thanks @T2000Bill
Community Updates
This may also help sellers if they use PayPal to BUY a courier service without insurance to deliver a lowish value item - and said courier "loses" the parcel or delivers it damaged. This has happened to me in 3/12 recent deliveries.... Hermes via Parcelhero

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Top comments
Bs from PayPal. Buyers will abuse this a lot. How are you supposed to prove anything with digital codes? Such as that the buyer didn’t use the codes already etc
Buyers already abuse digital purchases made in eBay and now this would make things even better for them.. Very hard for a seller to prove they hadn’t used the code.
been like this for awhile, plus as above this is just gonna get abused by the buyers just like they do on ebay already
Spykii14/02/2019 09:10

I have one dispute being reviewed by paypal at present. Sold an xbox code. …I have one dispute being reviewed by paypal at present. Sold an xbox code. Sent the code via tracked delivery. So buyer opened dispute as unauthorised purchase. So ridiculous tbh....


Bring back the negative feedback option for buyers I say.
292 Comments
Bs from PayPal. Buyers will abuse this a lot. How are you supposed to prove anything with digital codes? Such as that the buyer didn’t use the codes already etc
been like this for awhile, plus as above this is just gonna get abused by the buyers just like they do on ebay already
Buyers already abuse digital purchases made in eBay and now this would make things even better for them.. Very hard for a seller to prove they hadn’t used the code.
DragonX14/02/2019 08:14

Bs from PayPal. Buyers will abuse this a lot. How are you supposed to …Bs from PayPal. Buyers will abuse this a lot. How are you supposed to prove anything with digital codes? Such as that the buyer didn’t use the codes already etc


Tbf what I do when selling a code on eBay is send the code via mail (be it on a piece of paper). Then you have proof of postage and two feet to stand on with paypal
As above. its needed for sellers not buyers:))) Have some... cold:)
bobac14/02/2019 08:21

Tbf what I do when selling a code on eBay is send the code via mail (be it …Tbf what I do when selling a code on eBay is send the code via mail (be it on a piece of paper). Then you have proof of postage and two feet to stand on with paypal


and if they use chargeback, nobody cares what proof You have... even normal goods.
learnt my lesson and got conned selling a £50 xbox voucher, will only ever post codes in the mail now.
Edited by: "DaRockwilder1" 14th Feb 2019
bobac14/02/2019 08:21

Tbf what I do when selling a code on eBay is send the code via mail (be it …Tbf what I do when selling a code on eBay is send the code via mail (be it on a piece of paper). Then you have proof of postage and two feet to stand on with paypal


They can still raise a claim saying code didn’t work or its used already. Item not asdescribed..
Edited by: "Spykii" 14th Feb 2019
This was always covered for buyers, scanners have been ripping off digital sellers on eBay for years, they got me for about 10 xbox live codes.

Nothing new here
bobac14/02/2019 08:21

Tbf what I do when selling a code on eBay is send the code via mail (be it …Tbf what I do when selling a code on eBay is send the code via mail (be it on a piece of paper). Then you have proof of postage and two feet to stand on with paypal


Paypal want proof of postage via a tracked service so that takes a couple of £ from your profits. It's usually better to take the occasional hit from a scammer.
Meanwhile counterfeit goods are still dealt with in a ridiculous manner!!
Got stung too. Luckily paypal themselves as a gesture if good will honoured the payment. Still damage done
What a joke. Sellers need protecting with digital goods rather than buyers.
Newer sites use a link which records you accessing it so its covered by seller and buyer this way
I've sold codes on ebay and had PayPal side with them in the past after the buyer used the code then made a claim.
Twice I got scammed for selling Argos and Amazon vouchers on ebay (£5 each)..
but Paypal came through for me.. No way I would risk selling digital items..
Heat as its extra protection for the buyer..
Edited by: "shabbird" 14th Feb 2019
Azwipe14/02/2019 08:40

Paypal want proof of postage via a tracked service so that takes a couple …Paypal want proof of postage via a tracked service so that takes a couple of £ from your profits. It's usually better to take the occasional hit from a scammer.


Was told by Royal Mail staff that most post is now tracked even without paying. It’s not the same as tracking option where it shows when it’s been dispatched etc, it just shows it’s been delivered on their end.

Regardless, difference isn’t massive in pricing between sending regular post or tracked. If your selling a large voucher or code I defo would go tracked route
I’m worried about using PayPal now even for physical goods. I made a purchase Via PayPal to John Lewis and JL claimed they never received my money so wouldn’t refund me. I opened a dispute with PayPal who aren’t being very helpful
If we pay for Brexit with paypal does that we would be entitled for a refund should the 'benefits' not be delivered?
shabbird14/02/2019 09:07

Twice I got scammed for selling Argos and Amazon vouchers on ebay (£5 …Twice I got scammed for selling Argos and Amazon vouchers on ebay (£5 each).. but Paypal came through for me.. No way I would risk selling digital items..Heat as its extra protection for the buyer..


I have one dispute being reviewed by paypal at present. Sold an xbox code. Sent the code via tracked delivery. So buyer opened dispute as unauthorised purchase. So ridiculous tbh....
Spykii14/02/2019 08:38

They can still raise a claim saying code didn’t work or its used already. I …They can still raise a claim saying code didn’t work or its used already. Item not asdescribed..


Any eBay item can be opened as an “item not as described” in which case they need to send it back to you and you can always dispute it as you will have date of post/arrival and can check when code has been redeemed (as you physically won’t have the code when it’s redeemed, PayPal might side with you). Most non digital items can get the “item not as described scam” and it’s always a 50-50 coin flip what eBay would do.

With digital codes the scam is often “item not received” which eBay only backs seller up if you have tracking. You sent a paper with physical code so you would have that available.
bobac14/02/2019 09:10

Any eBay item can be opened as an “item not as described” in which case the …Any eBay item can be opened as an “item not as described” in which case they need to send it back to you and you can always dispute it as you will have date of post/arrival and can check when code has been redeemed (as you physically won’t have the code when it’s redeemed, PayPal might side with you). Most non digital items can get the “item not as described scam” and it’s always a 50-50 coin flip what eBay would do.With digital codes the scam is often “item not received” which eBay only backs seller up if you have tracking. You sent a paper with physical code so you would have that available.


Reply in the above comment.
Spykii14/02/2019 09:11

Reply in the above comment.


Unauthorised purchase still requires you to return the item. If the address is the default one used for prior purchases, the code should still be intact if you only sent it in a physical form
Spykii14/02/2019 09:10

I have one dispute being reviewed by paypal at present. Sold an xbox code. …I have one dispute being reviewed by paypal at present. Sold an xbox code. Sent the code via tracked delivery. So buyer opened dispute as unauthorised purchase. So ridiculous tbh....


Bring back the negative feedback option for buyers I say.
Spykii14/02/2019 09:10

I have one dispute being reviewed by paypal at present. Sold an xbox code. …I have one dispute being reviewed by paypal at present. Sold an xbox code. Sent the code via tracked delivery. So buyer opened dispute as unauthorised purchase. So ridiculous tbh....


Mine was the same.. but within minutes of calling them, they refunded me.. was my first claim and the amount was
so low so they refunded me quickly. Ebay gave me an offer.. sell 3 items for £10 total and they
would give me £10. So thought selling digital items would be the easiest way to get that free £10.
Not one of my smartest move
shabbird14/02/2019 09:15

Mine was the same.. but within minutes of calling them, they refunded me.. …Mine was the same.. but within minutes of calling them, they refunded me.. was my first claim and the amount wasso low so they refunded me quickly. Ebay gave me an offer.. sell 3 items for £10 total and they would give me £10. So thought selling digital items would be the easiest way to get that free £10. Not one of my smartest move


Aww..Shabs.. we all have the learning curve at one stage.. you can soon make it up buddy. Cheer up
Spykii14/02/2019 09:22

Aww..Shabs.. we all have the learning curve at one stage.. you can soon …Aww..Shabs.. we all have the learning curve at one stage.. you can soon make it up buddy. Cheer up


awww that was a while ago and since then, I have paid more than £200 to ebay on fees.. so they certainly
made that free £10 back lol.
DragonX1 h, 16 m ago

Bs from PayPal. Buyers will abuse this a lot. How are you supposed to …Bs from PayPal. Buyers will abuse this a lot. How are you supposed to prove anything with digital codes? Such as that the buyer didn’t use the codes already etc


Paypal just opened a Pandora’s box, for majority it’s good, but it only takes a few, lets see how long it last before the terms and conditions are made stringent.
Never selling anything digital via eBay again after someone scammed my copy of for honor. Paypal protection is only for buyers sellers don't have a chance. I'm at the point where every item I sell on eBay I'm worried about a fake claim for a week or so after I've sent an item
Spykii14/02/2019 09:10

I have one dispute being reviewed by paypal at present. Sold an xbox code. …I have one dispute being reviewed by paypal at present. Sold an xbox code. Sent the code via tracked delivery. So buyer opened dispute as unauthorised purchase. So ridiculous tbh....



Pretty sure you don't even need proof of delivery for unuathorised purchases, a proof of postage will suffice
afuahboom1 h, 52 m ago

Comment deleted



Haha, brilliant. Never thought of that though any game I sell is always physical disc. Will keep that in mind if it does happen in future.
If only someone could develop a key checking system that works in escrow. You enter the code, buyer pays the money, and the system checks your key against steam, xbox or whoever to validate it hasn't been used. Might be possible with xbox as you get a confirm screen before applying the code, guess other providers might be the same?
To prevent key spamming it only checks a key if theres a payment.

There you are, free business idea for anyone who can be arsed.
Be aware that if you book and use Paypal to pay for an event over 180 days in the future and the event gets cancelled, they will not refund you.
There have been instances where people have been refunded, but it appears to be down to an individual's discretion.
The T&Cs state that they will not refund.
Jace_Phoenix14/02/2019 09:38

Pretty sure you don't even need proof of delivery for unuathorised …Pretty sure you don't even need proof of delivery for unuathorised purchases, a proof of postage will suffice


Nothing will do. I have a case opened right now aswell for unauthorised purchase. Called PayPal scum and they told me if the bank rules in favour of the buyer then PayPal will remove my money. Nothing else matters.

Now my balance is in the minus. Glad for that. Should the outcome not be in my favour I’ll just start up another PayPal. No way in hell im losing my money . FVK U PAYPAL
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PayPal are a law unto themselves; as I found out to the tune of several hundred pounds. They broke UK consumer law and got away with it because of a technical loophole - they use a Brass Plate "office" in Luxembourg, meaning they are outside UK consumer law jurisdiction.
bobac14/02/2019 09:08

Was told by Royal Mail staff that most post is now tracked even without …Was told by Royal Mail staff that most post is now tracked even without paying. It’s not the same as tracking option where it shows when it’s been dispatched etc, it just shows it’s been delivered on their end.Regardless, difference isn’t massive in pricing between sending regular post or tracked. If your selling a large voucher or code I defo would go tracked route


You’ve been told nonsense.
sweetPetite14/02/2019 09:08

I’m worried about using PayPal now even for physical goods. I made a p …I’m worried about using PayPal now even for physical goods. I made a purchase Via PayPal to John Lewis and JL claimed they never received my money so wouldn’t refund me. I opened a dispute with PayPal who aren’t being very helpful


Did you use a card or PayPal balance? If you used a card through PayPal get the issuer involved. There has to be a record of the transaction. Try not to let PayPal balance build up to use. Always try and use a card
Loving it
Does it cover physical gift cards? Have had few issues where I paid for a gift card outside eBay and seller did not deliver. I opened a PayPal case but told they did not cover gift cards. Have lost few hundred quids. Now only buy gift card face to face or via ebay.
lol here comes the scammer baby! Now everyone will start claiming codes doesn't work and get full refund.
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