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I understand 100%, as I'm a small shop and I turn away bad clients all the time. But if you're not going to provide the service, you return the money, and you _definately don't delete the backups_!

What This* did is terminate the account, pocket the money, and delete the backups. Not only is that unprofessional, it's _illegal_. If it weren't it would give a legal defense to every person charged with fraud ("we just decided to terminate the business relationship without a refund").

I don't see it stated anywhere that they kept the money. Based upon the fact that a paypal dispute was behind the entire situation, it is very likely the customer simply filed a paypal dispute because he didn't agree with something that happened rather than outright asking for a refund.

As a company that has provided paypal support for products in the past, disputes can be a massive headache and there are certain customers that use the process to their advantage (i.e. using a service for 30 days then filing a paypal dispute claiming the service was broken etc.)

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