If any product looks fishy or too good to be true, it probably is. For transactions I would stay away from Paypal and use another method. Paypal should be used for online shopping (which is what I use it for). Sorry to here about what happened, but this should show users to stay away from Paypal...

Yes many people do buy scripts from my site and then file a chargeback.

But I am getting a habit of it now.

Already lost a fortune that maybe my twin brother could have used if he existed...

You should be manually setting up the campaigns. Have a waiting period for people outside the USA while you "verify" payment or something. I bet you can see a pattern from the payments who is scamming you.

Personally I don't believe this is a "paypal" horror story. If it wasn't for paypal I doubt you would get much if any business to begin with...

If you're into selling digital goods this may be worth looking into, I have no personal experience with them or could safely recommend them, but it's worth checking out if you want to avoid the charge back drama/losses...

This is very common, because it's not a tangible product.

Good luck...

Got burned selling an iPod last year for a chargeback. for every time you get a swift kick to the lower region, you learn how to defend yourself. instead of going thru the automated paypal options, you can create and send an invoice listed as a Service vs. a Product. there is no buyer protection in regards to services...

Well if you can show paypal that it was shipped and delivered, aka through UPS (cause you can print the tracking page or get a hardcopy), usually they can help you... whether they will that's another story...