Fortunately for most of us that use paypal on an almost daily basis, this isn't even close to being the truth. I get it you might be generalizing and perhaps *some* of it may have been more accurate 15 years ago, alot has changed now. Credit card companies don't distrust paypal. Maybe a rep with their personal opinion on the telephone might have frowned on you when you called it in just to keep the conversation sane but every credit card company willfully approves their card being used thru Paypal, it would be insane not to allow it. Paypal will absolutely cover you with protection (used it a dozen times) but you have to follow the rules which sometimes are not easy to understand. Not saying this is what happened here but in the past, too many buyers bought stuff using Paypal knowing they could just complain and make up stores and get their money back and the FSA use to rule over the seller....no longer.
We don't know how this entire transaction went down and the timing so until the facts are in, can't point the finger at Paypal. Unfortunately there's a process and details matter and unfortunately if the seller knows the process better than the buyer, it may work out to his advantage. Sometimes you just gotta notice the red flags. Being able to return the goods would mean you get a refund so it's likely the seller got the case closed by Paypal before you could hit that button and create the return; so clicking on that button would never go anywhere ever. Sometimes just a simple "all sales are final" is enough to get Paypal to act because (not saying you did this) but it has happened a million times where you sell something, the buyers gets your used goods, it's a little bit too used for them and they feel cheated, they complain and start a refund, and the return box has a rock in it.