On the difficulties of defining intangibiity. Paypal seems to be having a hard time coming up with a policy.

« I’m selling an online account and I’m going to be shipping the buyer a password to the account. »
« OK, I can tell you now then that that would not be covered. »
« Why not? »
« Because it’s a virtual item. »
« But I’m not shipping a virtual item, I’m shipping a piece of paper or a floppy disk with a password for the virtual item. »
« But you’re not selling the password, you’re selling the virtual item, which is not a tangible good. »
« Well, neither is a football game. Football games are not tangible goods. »
« But you’re not selling the football game, you’re selling the tickets, and those are tangible. »
« So is the piece of paper I’m sending to my buyer. »

[Thanks Fizzz]