You book a place at a conference using PayPal. PayPal transfers money to the organizer. The organizer withdraws it, buys a lot of beer, never organizes the conference.
You used your credit card to pay for the ticket, so you call your credit card company and request a chargeback. The credit card company takes the money back from Paypal IMMEDIATELY (this is standard in all merchant agreements), pending an investigation. Ultimately, PayPal gets left holding the bag.
Sure, credit card companies count on losses for fraud, but in most cases, they get their pound of flesh. In this case, it's PayPal's flesh.
You book a place at a conference using PayPal. PayPal transfers money to the organizer. The organizer withdraws it, buys a lot of beer, never organizes the conference.
You used your credit card to pay for the ticket, so you call your credit card company and request a chargeback. The credit card company takes the money back from Paypal IMMEDIATELY (this is standard in all merchant agreements), pending an investigation. Ultimately, PayPal gets left holding the bag.
Sure, credit card companies count on losses for fraud, but in most cases, they get their pound of flesh. In this case, it's PayPal's flesh.