Basically according to section 13 of your Paypal agreement they do not refund non tangIble goods or virtual goods. This is absolutely against UK law and trading standards advice and is a loophole that needs closing.
They portray to give buyer protection and therefore I feel I have been mislead by such claims on their website as they have generalised it so much so that Im sure many other users have felt duped from Paypal and Fraudulent sellers.
So going back to the point in hand. If you buy something virtual off ebay, or through paypal via another website and its Non Tangible (is not a physical item) or is a virtual item you have to download, you are not covered by Paypal and they will not investigate fraudulent activity being conducted by other Paypal account.
So according to trading standards UK law, if the "Goods are not fit for purpose made known" I am entitled to a full refund from any seller wether national or international because that transaction falls under UK law as I am a UK consumer.
Paypal have completely ignored this and are the man in the middle taking the money for that transaction and offer no protection what so ever.
I am now £120 out of pocket for an internet template from a supposedly reputable dealer in such items. I now have to go to Trading standards, gather the evidence of which I have via e-mail and produce a file to submit to my bank to retrieve the money I have lost all because Paypal wont put such goods under their payment protection policy.
This Loophole should be closed as they cannot have their cake and eat it and sell tangible goods with non tangible goods and miss lead the public with a large international marketing campaign.
I know many of you might think that read the small print under payment protection etc but in my view Paypal should make it clear at checkout that the items do not fall under such payment protection. In all likely hood a very small percentage will check the small print before the purchase an item on ebay or via paypal.