I have a had a great experience with PayPal. I created a website for some one. I showed them a preview, and said DON'T RIP THIS, IT HAS BUGS AND IS NOT COMPLETE!. The guy says ok. Next day I come one he says dont worry about finishing I just ripped it, Is aid it has bugs, he said its fine don't worry. So he pays me. And im fine. The next week he opens a claim against me in Paypal, saying I never gave him the layout and that I scammed him, LOL. SO I go his site, I take images, I take images of the PSD and code on my computer. I show Paypal. I also call them and I said what are my chances of losing this case. They told me that they don't usually interfere with virtual goods/services. And then the guy told me that its against his job to give me a definite answer but then said Over my dead body. So if you get a good support agent, and provide proof. You are always safe
My paypal experience has been nothing but positive. Never had any trouble buying/selling things, never had my account limited either.. I think they're amazing.
Paypal sucks and you can't trust your money / account with them.. End of story. The only reason people are still using them is because that's the only method of online payment that most people will use. They have terrible security measures for the seller only the buyers. Try and protect yourself from a HACKED account when your selling a download on a script site. You can't and absolutely cannot win.
My two bad experiences, one time they suddenly declared that they suspect me of money laundering and limit my account but it was automatically unlimited without me doing anything and without a trace of complaint in the open or closed cases. Another time they hold a 25 cents incoming money saying that they had to protect us. They held it for 3 weeks I think then release it saying it was ok. Two such cases after so many years in Paypal, I would say they did a fantastic job overall.
Got an account sign up under UK country because I can't verify since I am underage (3-4 years ago). Sold some virtual stuff then got charged back. Ended up with $-180 balance. Screw them I just leave the account there and gone I am glad I spent all the money before they charge back. Their chargeback policy is so stupid but oh well.
It's not necessarily their chargeback policy. If someone disputes a transaction with their credit card, the card company will refund the cardholder and retrieve the money back from PayPal. Since PayPal (like any company), doesn't want to lose millions or billions per year with such instances, they're of course going to take the money back from you. In the end, intangible goods stand the best chance on losing a dispute since it isn't physically shipped. Also, you've used false info when signing up so that wasn't exactly the smartest thing.