A reversed status is always initiated by PayPal. There are many factors involved that could be giving you a reversed payment status. One of the first areas you can check is to make sure that your PayPal e-mail is linked correctly. You can follow our Quick Start Guide to help you insure that you are set up properly.
The most common reason for a reversed payment status is a customer dispute. More than likely, they have canceled the transaction through PayPal or asked for a refund or something to that affect.
It is possible that the customer’s PayPal e-mail is invalid.
Also, certain countries have very specific limitations within PayPal.
For more information on how to handle disputes with PayPal, please read the following article: