I think it's a strange decision, why would they deny protection to the type of purchases that ensure sellers keep money in their PayPal account and use it to pay for stock, which ultimately encourages the constant back and forth flow of money within PayPal (which they profit from), rather than encourage people to withdraw it and use alternatives? They would know these types of payments can't be subject to chargebacks, so the risk of that kind of issue and cost is minimised and leaves PayPal as the only source of protection if something goes wrong, except now those payments won't be protected at all.

Dodgy as, IMO.