Everybody has caught on to paypals so called "fraud protection", which often involved going to ridiculously elaborate steps to prove fraud.

For a pair of pants I bought, I had to actually go to a retailer and get them to write a letter with their letter head, proving that they were a cheap copy. There is absolutely no reason a retailer would waste time doing this, why would they. They have a business to run, and are not doing a charity.

So now most savvy people purchase on paypal with their credit card, and when paypal pulls something like this, they just do a chargeback or threaten to do a chargeback.

Paypal are incredibly inflexible at times, their site is horrible, but they still have some advantages.