[ephibiz]

To play devil's advocate, how could similar businesses make better decisions? For example, buyer/scammer "A" sends money via credit card payment to seller "B"s paypal/dwolla/freelancer/etc--"C"s account, who then withdraws the money to his bank. Buyer "A" then files and successfully gets a chargeback from the credit card company, who debits company "C".

Now C is wrongfully in the red, and they need to make it back somehow. Their only options? Either get it back from B's account or take the hit--which can really hurt smaller companies and startups.

What would you do in company C's position? It seems that the real bad guy here is the credit card company, TBH.

[codenerdz]

I sort of agree, but again, Paypal is also enabling this to continue by refusing me the chance to bring my case to the credit card company.

Short of legal action, they would not let me get the contact info for the buyers credit card company in order for me to deal with them directly.