thorsten_iceland - 4:47 am on Dec 30, 2008 (gmt 0)
I disagree. PayPal provides protection for those whose billing address is confirmed--that is, their billing address is identical to their shipping address. This is true regardless of whether they have a PayPal account.
With respect, PayPal's protection for sellers is extremely limited.
The only thing that comes close to what you seem to imply is 'Expanded Seller Protection' but that is only for eBay PowerSellers (and then only the UK, US, Canada and Hong Kong to begin with). It is not for general sellers outside eBay.
The following is the reality for general online sellers, taken from PayPal's own Chargeback FAQ*:
"Q: If a seller amicably resolves a PayPal dispute or wins a claim, is the seller covered against chargebacks?
A: Yes, if you amicably resolve a dispute through the Resolution Center, Paypal will protect you 100% against any future claim, chargeback or bank reversal the buyer may file for that transaction.
To be covered, however, the seller must honor agreements made with the buyer during the dispute resolution process. And, if the chargeback comes in before the dispute or claim is resolved, the seller will not be covered. ... Q: Does PayPal dispute every chargeback with the buyer's credit card company?
A: PayPal reserves the right not to dispute a chargeback even if the seller has provided some evidence, particularly if PayPal believes the dispute is not likely to be successful.
PayPal's business model is based on a low cost, highly automated model. They care about throughput, not your individual transaction. If they believe they will lose the chargeback re-representment they just won't bother to challenge the chargeback.
PayPal has a certain amount of power to ostracize people who chargeback against them, but mainstream customers won't be too concerned about that because they will just stop using PayPal, and buy from any of the other competing sites to that online seller that accept credit cards directly.