PayPal integration: How to change the items so they are considered as services instead of goods

We are selling event registration...and according to the JF User Guide, selecting the "Goods" option is what we should select at setup. However, when someone pays for event registration via PayPal, PP holds the money for 21 days unless we go into PayPal and indicate the product has shipped (which we don't have a product, just offering paid registration to a non-profit event). When we say the product has shipped (even tho there isn't a product) the registrant receives and email from PayPal saying the item shipped, which is misleading

When I call PayPal about this, they say it's because JotForm has indicated on the backend that it's a product, and they need to change it to a service so we can get paid immediately and not have to bother with shipping status. How do I do that?

Are you referring to this form: http://www.jotform.us/form/50119321772146?

I did a test using PayPal's sandbox (testing environment) using a cloned version of your form and the payment was completed successfully without saying that the item was shipped.

Does this happen when your registrants make the payment using their PayPal account or when they use a credit card?

Thanks for responding. I tried with both a PayPal account and a credit card and both processed just fine. The problem is that PayPal then holds the funds for 21 days (any form of payment) unless we mark that "the product" has shipped. We don't have a product. They are buying an event registration.

PayPal said he only way to avoid having to indicate shipping status, is by having the JotForm changed from "sell products" to "sell service", but I don't see that option when I go to the PayPal payment wizard and select "I would like to". I only see the three options of "Sell Products. Sell Subscriptions and Collect Donations".

Have you tried using PayPal Express integration instead? You can indicate there that you're selling digital goods (which don't require shipment) and this should make your payments available once the process is completed. 

Let us know if this helps.