After about 200 transactions on ebaby, most of them using paypal, i got ripped off twice at the same time. One was a dishonest seller who lied about the condition of an Anita RPN claculator, The other was an auction for a dvd set that was canceled by ebay but paypal took my money anyway. I contacted the sellers, no dice. I complained about both of them to the ebay/paypal conglomerate and they ignored me.
Then i went to my credit card company. Wells Fargo demanded an actual answer. Paypal ignored them. After 3 months my money was refunded in full for both and they took it out of paypal's hide.
The moral is to always use a credit or debit card to pay off paypal and if there's a problem; go to your bank. Paypal already has your money - they don't see any problems.
Sorry to muddy up the waters here. I just thought it might help someone.
protecting oneself from paypal
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