What is PayPal stance on businesses banning users following a dispute?

[Tenderkaj]

I opened a dispute for a software product I bought and didn't receive for over a week.

I eventually got it, but I've been banned from the transaction engine who handled the payment: "The dispute claim states that the payment was unauthorized, so that means I have to treat this payment account as if it's compromised".

Now, I never stated the payment was unauthorized, just that I never got my product (I attempted to contact the company and they only got back to me a day before the issue was fixed). So, did PayPal report the wrong thing to them or are they trying to bully people into holding back from opening disputes? If it's the latter, does PayPal have a stance on this?

Thank you.

[kernowlass]

@Tenderkaj 

Which dispute did you open?

Unauthorised payment OR item not received.

[Tenderkaj]

Item not received. I've no idea what they're talking about when they talk about a unauthorised payment.