PS - I'm not actually disagreeing with you, BTW, I think there are some circumstances where PayPal or the bank should bear the loss regardless, eg when a payment is processed as instant (i.e. so approved by the bank and accepted via PayPal) due to having a debit card attached to a bank account, but it in fact turns out that there were not enough funds to cover the payment in the account, so it often gets reversed - if the bank says 'yes, there's money here, take it', and PayPal say 'it's all good, you can post', then later (sometimes a couple of days later, so the item's already been posted) they're all like... 'uhhh, hang on a minute....we didn't do that right, there's no money'. then IMHO the seller's account should not be debited - the bank or PayPal should take that responsibility.