I can’t count the number of times I have been denied Seller Protection despite following the exact letter of the PayPal law for it.
The latest incident is typical -PayPal decides they will not cover a game subscription card after a buyer filed an unauthorized transaction report because it is an “intangible good”, despite it is a physical card and I they have covered me numerous times for others. I called last week to inform them of this, they said a ticket would be opened with a supervisor and he/she would need to sign off. No email/phone call/follow-up and 10 days later, I call again and it’s like that interaction never happened. On top of that, they now say that it was a chargeback for “item not received as described” which doesn’t make sense since I have an email from them saying it was a chargeback for an unauthorized purchase. They told me today they would open a ticket and I asked for an email confirmation -none received.
Source: http://www.paypalwarning.com/denied-seller-protection/