[datawalke]

About four months ago I had a client who received their licensing information put in a claim on me. Even though I sent full documentation showing that they received their license they still refunded this individual. That did get me quite upset with PayPal. Since then I really haven't done that many transactions with them or any online freelancing. I'll have to keep the wire transfer in mind for the future. Thank you bosch!

[Osiris]

I have this happen to me. My licensing system accepts the PayPal Reversal IPN and cancels the license key. The next time the software checks for an update it sees the license is invalid and disables the license. I'm not sure if it's the best way to handle the situation, but it's effective.

[lsc]

this will happen with any credit card processor, not just paypal. If the consumer says they didn't receive a 'digital good' the merchant doesn't get the money. hell, a lot of cards will refund the customer's money even if it was a physical good, and the customer just didn't like it.