When purchasing digital gift cards from PayPal Digital Gifts on EBay, holding the cards for over 30-days (EBay's Money Back Guarantee is only within 30 days of delivery) puts you at risk for losing the gift card amount without any way of getting it back.
I purchased $75 worth of digital gift cards, one $25 and one $50, for $60 during a front page deal in late June. After receiving the digital codes, both had the correct amount at the time, but 4 months later my $50 gift card balance was at $0. I did not use it and no one had access to my code. After emailing the seller, I did not receive any response and I was outside of EBay's Money Back Guarantee policy. A few of the negative reviews of PayPal Digital Gifts reported the same issue, so please be aware of this and use your gift cards within 30 days rather than hording it to stack on future deals! I see these sales appear every now and then so I hope this prevents others from losing their balances! Thanks for reading!
Edit: Received Refund. Below is What I Did.
Please read entirely before following the steps. You might be able to skip parts of what I did. This is just my personal experience.
1) I started a Dispute through PayPal's Resolution Center. Clicked Dispute a Transaction
and marked the dispute as "Item not received"
2) PayPal Digital Gifts (The Seller) responded with invoice numbers of my gift cards
3) I contacted Best Buy Corporate to ask for where the gift card was used. Tracked it to a different state and was transferred to the the store it was used in. I asked the employee to email me the receipt of when my gift card was used.
4) Jumped on PayPal.com and changed my Dispute to "Not as described"
5) I left a comment mentioning the hackers on PayPal Digital Gifts (Seller), my location and the location the stolen gift card was used. Through a different link, I also uploaded a pdf of the receipt, but when I checked PayPal it didn't say I had any files uploaded. Don't know if it went through or not.
6) PayPal was awaiting a reply to my comment from PayPal Digital Gifts (Seller). They had 10 days to response before PayPal took action. 11 days later I received a message on Facebook from PayPal asking if the matter was resolved yet. I messaged back saying No. They refunded my entire purchase and I closed the case.
Process took me about 2 weeks. On Day 1, I Facebook messaged Ebay and PayPal. Ebay was useless. PayPal said they would look into it, but it felt like I just went through the dispute process normally.