Why did PayPal rule in favor of a buyer on a chargeback

[Timhenderson]

What kind of protection do I have is the seller on PayPal? I’ve been with them since their inception. I had a customer request to charge back on an item that I think he fraudulently purchased. Everything seem legitimate but a week or so after the sale at a notification from PayPal that there was a charge back on my account. PayPal took my account to a -$7000 balance. This was a high ticket item. Turns out someone must’ve used a stolen credit card. I was able to track down where it was shipped actually went and knocked on the door in another state and they confessed the fellow has used a stolen credit card and then asked for a charge back and ship the item somewhere else to make money off of it. I sent all the information to PayPal, offer them police report and everything And now they said they have ruled in the favor of the buyer. I don’t understand this I’m out $10,000.

[PayPal_Bindu]

Hello @Timhenderson 

Congratulations for your first post in the PayPal Community!

I understand your concern about the outcome of the chargeback opened by the buyer. Please be informed that a chargeback isn’t the same as a PayPal claim. Chargebacks are initiated outside of PayPal and controlled by the card issuer. If you don’t agree that the chargeback is valid, PayPal can help you to dispute it on your behalf. In a dispute over a chargeback, the decision is ultimately made by the card issuer and PayPal don't decide the outcome. 

Please refer these articles for more information on chargebacks and chargeback protection here : 

What is a chargeback, and why did I get one?

What is Chargeback Protection?
 

Hope this information helps you,

Bindu