This happens all of the time. Paypal is caught in the middle, and the credit card company almost always decides in favor of the buyer. It's because they're tryi

This happens all of the time. Paypal is caught in the middle, and the credit card company almost always decides in favor of the buyer. It's because they're trying to provide the same service for both EFTs and credit cards, and those work very differently in the real world. Unfortunately, PayPal sticks the user with the cost in this case. It would be out of business I'd imagine if it ate the cost. Whenever someone pays for something with a credit card using PayPal, you automatically lose all of your protections if they dispute it through their cardholder. They just act as a passthrough.