Greg, unfortunately this is all part of the landscape of non face-to-face payment processing.  That's why processors consider the risk of loss to be higher, and that's why non face-to-face credit card transactions (including internet, mail/phone order etc) processing rates and fees are considerably higher than 'card-in-hand rates and fees.  "Item not received as ordered" is unfortunately for you a legitimate reason for dispute.  And because you have neither proof of card in hand nor original signature,  you wlll lose every dispute--that's the way Reg Z and other regulatory agencies have designed the system.  There ARE several common sense policies and strategies merchants can and should implement to minimize (but not avoid altogether) this type of scam. which your payment processor should have provided  you during training.  If you have an internet merchant account and your processor has not trained you, then you have been severely shortchanged---time to find a new processor?  If you rely strictly on Paypal for payment processing, then we already know the answer to the 'did you receive training' question, which is 'no'.  Again, the old proverb 'you get what you pay for' proves to be true.  A couple of words of wisdom I'd like to share with you based on many years working with small business:  #1-- you need to resolve the chargeback problem.  It's much more than just a financial burden to you.  If it keeps up,  your merchant provider will shut you down and place you on the industry "Match File" which, for all intents and purposes, will put you out of business.  So you need to take some decisive steps yesterday.  #2--don't let anybody try to sell you chargeback 'protection' or 'insurance' or whatever.  All  you'll accomplish is add another "Ive been scammed' trophy to your collection.    #3--unfortunately, bad debt, in your case chargeback loss, is a part of every business model.  You need to take control and limit the losses to an acceptable percentage of sales just as you would budget for any other overhead expense item, and utilize that number when computing your overhead factor for purposes of pricing your product or service.  I'm not suggesting you should throw a celebration party everytime you get a dispute, but if you can hold it within your projected limits, then just accept the inevitable as a cost of doing business.  That said, if  you cannot control it and it continues to persist and grow, then  you need to deal with it on another level, per my comments above.

I love Paypal, but sometimes they are unreasonable because there are so many people that are not truthful.  If this is your only product you sell on Ebay, I would NOT accept Paypal for a payment.  This may hurt, but I would advertise the reason right in the product listing.  An understanding person will be ok with it, the haters you probably do not want as a customer anyway.  This way if you were only paid by money order or check, you would be in control.  I wish law enforcement would help, but they are too busy for ecommerce.

Ken