Hi Larry,

Here is what can cause the reversal, according to PayPal website:

There are three main reasons a buyer will do this: (reversal aka chargeback)

The purchased item never arrived.
The item was significantly different than advertised.
Their credit card was used without their permission to purchase the item fraudulently.
Chargebacks are initiated and handled by the buyer's credit card issuer - not by PayPal - and therefore will follow that company's regulations and timeframes. That said, PayPal often plays a role in resolving chargeback disputes.

Here's a quick overview of the chargeback process:

The buyer requests a chargeback from their credit card company.
The credit card company notifies PayPal's merchant bank and debits the funds from PayPal.
PayPal places a hold on the seller's funds related to the chargeback.
PayPal immediately notifies the seller via email and requests information that could help to dispute the chargeback.
PayPal is here to help sellers resolve - and minimize - chargebacks. Learn what happens after you've been notified of a chargeback.

The reality of the situation is far worse believe it or not. When a customer uses their credit card to pay through PayPal, you have two layers of consumer protection and the credit card supersedes PayPal. I have been accepting credit cards for over 30 years and I know the way the system works, it is nearly 100% always against a merchant and pro consumer EXCEPT in cases of fraud. A customer can start a reversal for almost any reason for up to 36 months after a purchase... yes months! That means that if the customer you sold something to paid PayPal with their visa card, they can call visa and say they didn't get what they ordered. Visa then contacts PayPal and holds payment. Them you and the customer each each plead your case with the credit card company. Once that is resolved, the credit card company involves PayPal for final payment. This can take a long time. While it is in dispute, the customer does not have to pay any finance charges on the purchase and you cannot spend the money. It's really complicated when someone pays PayPal with credit card, but if your documentation is good, I think you will eventually either get the money or you will get the strikes back. Let us know how it works out.