Paypal transactions become even riskier for website sellers

[Clinton]

A cautionary tale at NamePros: Thou shall not use Paypal

[grynge]

A cautionary tale at NamePros: Thou shall not use Paypal

As paypal is a registered company in most countries, if you receive a chargeback and can prove you sent the domain, why not issue the person you sent the domain to and paypal a small claims court summons. My bet is paypal would soon find in your favour and return the money to your account. Of course this wouldn't work in all countries and wouldn't work for large sums of money, but anyting (here in Australia) under $6000 I am 100% confident you would get your money.

[SiteSpeculator]

This is sort of a scary thread - as mentioned paypal seems to be growing by leaps and bounds.
But I am wondering - I can pretty much pull the money out of my paypal account almost immediately after it hits the PayPal Account . . . . what stops me as a seller from taking my money - considering that if there was a legitimate issue I would certainly return the funds - and if some scammer tried to charge the sale back - just closing the paypal account out and reopening another account - if there is no money in the PayPal account can they legally pull from the associated checking accounts or credit cards?
I am curious how anyone could really make this "work" on a larger scale for smaller transactions - as I know from previous commercial credit card processing work - that any MasterCard or Visa processors will quickly charge back any charge when a buyer complains - their perspective is that their customer is the buyer - NOT the seller - and actually if you have an above average amount of charge backs most credit card processors will shut down your processing entirely and freeze your accounts too - this is why the "adult" online industry has such a slew of very complicated and advanced credit card processing systems to spread out the inevitable charge backs from the angry spouses. This processing seems like a great business for Flippa (or someone) to START to help their sellers out??