Their own TOS states quite clearly they don'y refund buyers of 'intangible products' : which means 'downloadable products i.e. ebooks and software.
They now seem to be going against their own TOS which to me is reprehensible of any large corporation to do that. Where do you stand as a marketer with an organization like that? Is it the best organization to do business with?
I am now pulling all Paypal buttons off many sites of mine, Paypal will be the loser, not me.