You will most likely win the dispute. When it comes to PayPal, disputes are always in the favor of the buyer.
Wrong! Web hosting subscriptions and other non-physical services do not fall
under Paypal buyer protection and the moment you point out to Paypal that
the dispute is actually over an online hosting payment, the case is usually
closed immediately in the merchant's favor and a heavy worded warning sent
out to the buyer not to ever try to make such a complaint again.
No matter how good of a host you are, you will eventually run into idiots who
try to make a dispute and we have won every single time and in some cases
actually got the buyer terminated from Paypal in some cases just for making
the mistake of actually filing a dispute with Paypal.
And then there is other uses of knowing dispute Policy ...
In one particular case, a customer signed up with us and then filed a dispute
about 30 seconds after signing up claiming they never received their
hosting account. Once we pointed out Paypal's own policy on disputes
combined with the fact that the dispute was initiated only 30 seconds
after the purchase, the customer ended up not only paying us $8.95 but
also an additional $700.00 forcibly removed from their bank by Paypal
and MasterCard and written apologies given to us by both Paypal and the
customer attempting the fraudulent dispute.