Unauthorized transaction chargeback by the buyer

[Teito23]

The buyer sent money in order to make purchases for intangible goods/ digital goods and because they sent the money as friend and family. Without informing me they filed an unauthorized transaction to the payment and won the dispute without paypal allowing me to add any additional information to counter the buyer's claims of fraudulent activity. I have proof of the buyer authorizing and sending the money to my account and paypal doesn't even have an appeal button or location and for resolution center nor does it even have a provide more information button or location. They just straight up closed the case without any input from my end on the buyers favor. Due to the buyer cheating the system and sending the money as friend and family nulling any seller protection. This doesn't solve the problem of if they just make new accounts to cheat/scam other people doing the same thing or get my loss money back. There is basically nothing stopping them from doing this to more people and just having paypal return their money anyways because they are being rewarded for scamming people. 

I called in to find a representative to help me reopen or dispute/escalate the claim but they only told me that you have no seller protection so they won't do anything to help and only gave me the whole yeah I understand you spheal. Then they proceeded to just tell me to wait instead of trying to pursue escalating the dispute. After that they just left me ic3.gov as a place to just report this which doesn't really help me much in the case of getting my money back. So as of current I am stuck trying to get anyone else that can possibly help me to solve this issue as the taken amount of money was exuberant amount and I have "Paid Standard Transaction Fees on the sale" on my end for the product and the representative only had to say no it's not covered. 

I was told this transaction does not protect me under PayPal Seller Protection as direct accordance to their policy via this URL on their website: https://www.paypal.com/webapps/mpp/ua/useragreement-full#unauthorized-transactions

Seller's Protection guidelines and protection page here: https://www.paypal.com/us/webapps/mpp/security/seller-protection

“Unauthorized Transaction”

There’s a transaction, but the accountholder claims that he or she didn’t authorize payment. Their account is more than likely brand new and they lied about them not authorizing the payments to my account as the dispute excuse. 

For Intangible Goods:

• Delivered the item and provide Proof of shipment or delivery for Intangible Goods.
  I have proof of them taking the account and items and they have also changed the email and password on the taken account.
• Provide signature confirmation when the full amount of the payment (including shipping and taxes) exceeds the amount listed in the signature confirmation threshold table (based on the currency of the payment).
  I have the proof of the orders that was placed and the amounts that are due and the payment agreement we had when these were purchased. 

I have filed a dispute for the transactions and all of them closed in buyers favor including anything that was purchased using my info cause they considered those as authorized by me. In addition I couldn't get the representative to help me escalate the case and the buyer ran off with all the stuff they received and they stated they have done things like this before and didn't even hide the fact while pretending to not be in the wrong and saying I will get my money and that dispute would close in my favor cause it has happened before. Leaving me with little choices other than to continue to try to find someone to help my case. 

[brian12333]

Sorry that this happened. In my experience with PayPal it is better to use your credit card and have the credit card company deal with it.

[Teito23]

The problem with the transaction was because it was through paypal balance and cause of the buyer cheating the protections by sending it as friend and family which should have meant that like this response from one of the community advisors that the sent money that was intended for a purchase and used the "Friends and Family" option instead of "Goods and Services" that the PayPal system sees "Friends and Family" as one person simply sending money to another person - not an item purchase. Which also should have meant that I was someone they trusted to send the money to and should not have refunded them the balance they used but the most likely case is they created a smurf/new account and faked the transaction being fraudulent and unauthorized by them. 
The main issue I have against paypal itself was the fact that there is no button/option anywhere on the dispute/resolution center to provide proof nor allow for me to escalate these cases and instead they went ahead and just refunded the buyer money that they paid towards the goods. Resulting in me trying and basically killing myself trying to fix the problem.  

[Teito23]

Another update on the topic they been telling me that because the I have no seller protection because it was sent as personal payment which should have also meant that the buyer shouldn't have protection either. They still do not want to reopen the case or allow me to appeal on account of not being able to show proof of delivery or address. 
Shouldn't the fact that they sent it as personal payment mean that they trusted me and that it should have also limited or ruled against them as they received a produce in return? However clearly regardless they closed the case barely 3-4 hours into opening it on account of the buyer lying that they were hacked or had someone else go into their account to send the money. Even after I provided screenshots to the rep of the authorized payments. I am more or less losing my mind and sleep over this event as this isn't something that should have been allowed to happen. 
I also still can't stress enough the fact they didn't allow me at all to respond back to the dispute in the first place before they decided to close it and just full on refund the sender/buyer. So now I am out almost $500 cause of this event which hurts me and they allowed the buyer to benefit from pulling this stunt. 

[kernowlass]

@Teito23 

You would have known he sent it as friends/family as there would have been 0 fee. So the best thing would have been to refund and request they pay correctly using goods/services.

Its against Paypal rules to accept a family / friends payment for selling goods and you risk your Paypal account being limited if you do so.

A buyer would not be able to open a Paypal dispute for non-receipt of item OR item not as described as they would have no Paypal buyer protection.

However they can still open a dispute for an unauthorised transaction OR do a chargeback (via their card issuer) and you may well lose as you would have no Paypal seller protection.

[Teito23]

@kernowlass 

You are right that there isn't seller protection as I stated and that they also don't have buyer protection either as it should have been considered a "gift". However, paypal doesn't inherently specify on their website's activity list what payment type people send things as and you maybe know according to your activity it doesn't mean everyone knows that getting a fee on receiver's side meant that it was sent as goods/services nor know that when receiving from the sender without the fee on the receiver's side meant it was friends & family. I had only really been on the receiver's side for the majority of any payments sent to me and until I had even researched/ asked other's what shows up in my activities list did I even learn any of this. 
You would be correct as paypal had told me they did a chargeback to their "financial institution" I have asked paypal if they would provide me the name of said institution but, have been ignored. Leaving unable to speak to that institution's agents/representatives to resolve the issue through them instead. What gets to me if the fact that even with provided evidence proving that this person did authorized the payments can get away with doing the chargeback using their financial institution. While I cannot even be able to know which institution it is to dispute their case with them. I am still awaiting a reply back from paypal and have not been able to get an answer to my question of if they would or could not give me the name or phone number to this financial institution. 
I have also already read and seen plenty of other community members lose their cases over chargebacks as well. Very much like them not everyone knows how things work at paypal payment wise and dispute wise. Added the fact that what is supposed to be there isn't even present in the dispute cases' supposed options to allow you to add information for cases. In addition, The decision was too hasty on paypal's part it hasn't even been even 6 hours after the case was open that they already ruled it in the buyer's favor cause of this. It also just makes things appear that paypal could and would be able to blatantly allow scammers/fraudsters escape punishment for their misdeeds.