do you work for paypal? their anti fraud measures should stop dodgy credit cards being used in the first place. i have heard of, and know loads of people who have had hassle from paypal due to a customer using a dodgy card/account.
My PayPal account was stolen because I logged in it from a friend's infected computer and the next day I had $500 worth of charges made. My bank account ended up hitting me with $120 worth of fees because of going over my balance a bunch of times. I filed disputes with PayPal which was a bad idea. I should have done it with my bank. I ended up getting my money back, but when I contacted my bank to get the $120 worth of fees dropped, they told me since PayPal took responsibility for reversing the charges, they're the ones responsible for reimbursing my $120. I called my bank a few more times pretending I wanted to reverse the unauthorized transactions (basically starting from the beginning, which is what I should've done) done by PayPal. I managed to get $60 worth of fees knocked off. And then another time I called again to get the rest dropped and the lady said there's nothing she can do and that the $60 they took off was merely "courtesy" which is bullshit. The previous bank rep took off the $60 worth of fees because they were results of illegitimate charges. In this case it really isn't a PayPal horror story, just a Washington Mutual horror story. So, from now on if anyone gets illegitimate charges done from their stolen PayPal account, do it all through your bank. I also recommend the keychain passcode thing PayPal gives to business accounts for $5. It's basically this little device that randomly generates a PIN number when you push a button, that you append to the end of your password in order to login. It's practically impossible to get into the account without the physical keychain.