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I had a similar problem here in Australia for a phone I bought via ebay using my paypal account. I had put money onto my paypal account using my Visa card.
I went through ebay and they basically painted me to be the asshole and that I should know better.
I then went to my credit union and told them what had happened and what paypal had done and they contacted Visa who pursued paypal directly.
The case officer at the Credit Union said it would take about 4 weeks and sure enough it was done. Visa pursued paypal and then I assume paypal boned the fraudster.
I will never use paypal again, which certainly makes things hard!
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