Advice needed: goods or services?

[catwithpen.livejournal.com]

I've been told that digital art is a service, and should be charged as a service if asking for payment with paypal.

Today I saw this: http://www.furaffinity.net/journal/4320715/

It says that 1. Paypal considers digital art to be "digital goods" NOT a service, and 2. you need to charge for it as goods, and specify that it's digital goods. ETA: They claim that by specifying *digital* goods, it clears up the whole needing to mail something issue.

So which is it? Goods or services?

I tried to find info on paypal, but kept going around in circles and couldn't find anything useful.

I'm wondering if it's a matter of custom work versus ready-made items. So if someone buys an existing ebook, they are buying digital goods, but if they commission you to write them a custom story, then they are paying for the service?