I'm getting screwed by Paypal

Basically it's your problem.

As a seller/vendor you are responsible for any fraudulent charges.

The person who's card it is shouldn't have to pay for it. The credit card company doesn't want to pay for it and paypal sure as hell doesn't want to pay for it so the charge goes back to the vendor.

Paypal didn't screw you, its in the terms and conditions.
 
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