I'm a reseller for licensed scripts. When a customer buys one, I either email them a zip file, or install the script for them in their server. When the customer installs a script themselves, and it doesn't work, 99.9% of the time it turns out they either installed it incorrectly, or didn't set up the cronjob correctly. (One time it turned out their server had a very old outdated version of mysql).

On Feb 26 a customer bought a script from me and he installed it himself. I heard nothing more until April 11 when I got a notice from Paypal that the customer had filed a dispute for receiving an item that was significantly not as described.

I've been in contact with the customer, and he says the script doesn't work. He's being uncooperative, won't let me take a look, and doesn't seem to be taking my troubleshooting suggestions.

Either he's installed the script incorrectly, or he has changed his mind and just doesn't want it any more. I don't know, but in either scenario, if he escalates it to a claim, will paypal be likely to refund him his money? If they do, I'll be out the money and a licensed script.

Not unless it's fraud. Call PayPal, tell them to give you the # to business support. If your guy opens up a claim, call that # and tell them that the product is intangible, and the customer has already used and received the product, and is not returnable.

Though paypal does say they won't act on intangible goods, it's hit and miss to actually guess what they will do - it's different every time.. It's upto the agent who's reviewing your case.

I think PayPal is crap for intangible goods as most of the time they support customer even customer already used the software. I think to win a case/claim as seller you need describe T&C & make customer sign the paper contract.

I'm a reseller for licensed scripts. When a customer buys one, I either email them a zip file, or install the script for them in their server. When the customer installs a script themselves, and it doesn't work, 99.9% of the time it turns out they either installed it incorrectly, or didn't set up the cronjob correctly. (One time it turned out their server had a very old outdated version of mysql).

On Feb 26 a customer bought a script from me and he installed it himself. I heard nothing more until April 11 when I got a notice from Paypal that the customer had filed a dispute for receiving an item that was significantly not as described.

I've been in contact with the customer, and he says the script doesn't work. He's being uncooperative, won't let me take a look, and doesn't seem to be taking my troubleshooting suggestions.

Either he's installed the script incorrectly, or he has changed his mind and just doesn't want it any more. I don't know, but in either scenario, if he escalates it to a claim, will paypal be likely to refund him his money? If they do, I'll be out the money and a licensed script.

In your response to the dispute at Paypal place the following in the reply.

SERVICE

And you win automatically.

I have dealt with a number of PayPal disputes involving intangible goods. As the merchant, we have never lost. Just make sure that you let PayPal know that the item was not tangible.

The only time you won't win is if it is a fraudulent order (i.e. compromised Paypal account) but otherwise a eevryone else has said you are pretty safe

You might also consider using something like www.phpaudit.com to manage your licensing.

This way, if they win the chargeback/refund you can simply "cancel" the license and they will no longer be able to use it.

In your response to the dispute at Paypal place the following in the reply.

SERVICE

And you win automatically.
What does this do? (I'm just curious, as a one-word answer seems rather insuficient to win the dispute... so if you know something valuable then this is good info to understand.)

I suspect this is a way to tell the person reviewing the case that the transaction was for a service and not a tangible product?

will paypal be likely to refund him his money?As has been mentioned, you won't know until PayPal tells you.

I've won and lost cases as a provider and a consumer based on "electronic goods."

Sometimes they side with the provider when something is digital. Sometimes they side with the consumer when something is digital.

Just tell them that it was a digitally delivered service and hope they side with you.

I've never lost a case on intangible goods. You simply need to keep using that word over and over again in your response to the dispute (And I would respond in writing in the dispute vs calling them).

As the dispute has been opened, you should reply *once* stating the item is intangible, it's a downloadable product, repeating its intangible and yes, you guessed it, say it's intangible again. After replying, *you* should immediately escalate the claim to Paypal. Do not get into a back and forth with your customer and do not give your customer the opportunity to escalate it to a claim. Waiting and more replies only gives Paypal rep's more work to do and more reason to get confused.

My quickest time for winning a dispute was 15 minutes from when the dispute was opened, I replied, and Paypal sided with me. Other times, they take their 30 days (And longer) to get back to you. I think you should be fine though :)

This one is resolved.

I had repeatedly told the buyer that chances were, either he installed the script wrong, or he had set up the crons incorrectly. He insisted he installed it correctly, and set up crons correctly.

He finally let me in his account to look. It took me 5 minutes to determine that not only had he installed the script incorrectly, he ALSO had an invalid cron entry.

That was an easy fix.

Duh.

Good to hear that you got it worked out with your client.

I personally have had terrible experiences trying to resolve disputes with PayPal for intangible items. Each time, they denied my claim saying that they would not protect me because my transactions were intangible sales. I was surprised to hear that quite a few people here have won them, but given my own experience I've decided to never use them again.