I sold an item on Ebay. The buyer did not feel he needed to pay tax on the item. He could not resolve this with Ebay so he had his bank card dispute the entire sale amount. I sent the buyer the item which he still has. PayPal gave the amount of the item back to the buyers credit card. PayPal then put a negative balance on my account. I have been speaking with paypal for about two months and they assured me they had my back and I was protected. I then receive a notice they put the negative balance in collection with a third party. The have been in contact with the buyer. He has put money into my paypal account and sent me the transaction number. It has been three days. I have contacted the third party collection agency. My account still shows the negative balance. I was told to wait three to five days. I have tried to contact PayPal but they will not speak with me and immediately send me to the third party collection agency. So basically paypal wants me to pay them back the money for the item because they refunded the buyers bank. The buyer is happy with the item and was disputing only the tax paid. The buyer still has the item. If I refund paypal then I am out the money and the item. It is paypal responsibility to collect the payment back from the bank and resolve this issue. My account still shows an open dispute but when I click on it it says no information available. I was told by the third party that paypal has not tried to get the money back from the credit card company. So how are sellers like me protected by paypal. I am happy to explain my side of this to someone at PayPal. To sit down with someone and resolve this issue. I am fine to go in front of a mediator what ever it takes. I feel totally abandoned by PayPal and lied too many times. The customer service agents really cannot help with this but give no options. If this is a flaw in the paypal program then they need to take ownership of it.