If the c/c company does give protection for PayPal transactions, it would be easy to work a scam...
Bill and Ben are mates.
Bill sets up a PayPal a/c with a false address and advertises a widget on eBay for only £5000.
Ben buys the widget and pays Bill £5000 by PayPal.
Ben then says he never received the goods, and complains to PayPal who tell him that the maximum protection is £150. They pay him the £150 and discontinue Bill's account.
So Ben then claims from the credit card company. They agree to reimburse and pay Ben the balance of £4850.
Bill and Ben meet down the pub. Bill returns Ben's original £5000 and they split the £5000 from PayPal and the c/c company.
They then do it all again using other names. Etc.
