Do merchants get fined by their processor/card brands for chargebacks? If had an over 1% chargeback in the US, i would get large fines levied against me by the card brands and they may cut off my service. This laid out the contract you sign when accepting credit cards. Paypal is fining sellers who violate their terms which is exactly the same.
Paypals terms are just about maximizing revenue, not actually getting anyone to follow their terms, per se. They are already nearly impossible to follow. If paypal was interested in this, there would not be the level of fraud on their platform. Remember, paypal gets paid on the transaction whether it is a scam or not.
