been informed by palpal software is NOT covered . after an hour managed to lodge a dispute [some sever problem ] &
ebay doesn't seem to care
buyer beware- think I will shop else ware,not safe here anymore

It always helps to actually read the T&Cs you agree to when you open an eBay account.

 

inter alia, the bit about digital goods might apply.

 

Or the unspoken bit about a bargain being worth whay you pay for it.

 

You could try complaining to Microsoft - they sometimes will give you a real licence in return for being able to shut down a scammer.