Customer opened a PayPal case

[ya98ewew]

Hi, Everyone! I got 2 orders on July 27 from the same person. A few minutes later he posted a 2-star review and claimed that he could not download the digital files on the iPad (He Downloaded just one single file). I contacted him immediately on how to download and also uploaded the digital files to google drive and sent him the link so he can access and download (I believe he accessed the link) but never received back any response from him. A few days later, he opened a PayPal case against me and said that he could not download or contact the seller which is not true I am always online/active and responded literally immediately to him. I provided all the necessary information and details to PayPal and I thought everything is in my favor till today I got a message from PayPal telling me that “Case closed in buyer's favor” I have no idea why that happened. My shop rules state no return is allowed. Is there anything I can do? I tried to appeal on PayPal but that didn't help.
I can’t even find the option to tell Etsy that a case got opened and the customer is refunded. Thank you! 

[CraftyCornishMaids]

this case is nothing to do with etsy, it's paypal who has the money and refunded.

If paypal thought they were not as described, or they could not access them ( not received) they will refund, 

you can cancel the order on etsy, and receive your transaction fees back that etsy charged
orders and shipping, click on the order - more actions - cancel

you have no policies.

[CryzalisDesigns]

as you only have paypal as your payment option and not Etsy pay, you can only approach Paypal regarding payment and refunds, Etsy won't be able to do anything for you

[RamenSandwich]

PayPal Seller Protection was designed with physical items in mind, hence the emphasis on Delivery Confirmation proof that the seller deserves indemnity. It really doesn't apply well to digital items.

I don't think a "No returns" policy would help much in the case of digital items because they can't effectively be returned anyway. But regardless, stating such a policy means nothing to Etsy unless you put it in your Shop Policies section. As far as Etsy is concerned, they wouldn't give you Seller Protection anyway, for that reason.

[CraftyCornishMaids]

OP is paypal only, etsy doesn't give them seller protection,

because paypal has the money, and passes it to the seller, etsy doesn't have the money to refund with.

[OmasFabricStash · Accepted solution]

You have no policies showing so there is nothing saying you don’t allow refunds. The FAQ section aren’t policy so they don’t really count much if a case is opened. It’s the same for information added in the description. PayPal might be like Etsy in that if there are no policies the customer usually wins. 

[ya98ewew]

Thank you for all the responses. I appreciate everyone who took the time to respond to me. I will make sure to update my Shop Policies.