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The seller is rightfully entitled in this case. eBay is not doing this out of the goodness of their hearts — they are charging the seller a fee for conducting a sale on their platform. Given the fee, the seller has the right to expect reasonable service.

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Yes, and a high fee at that. Between ebay and paypal, you pay about 16% as the seller. They could easily take the hit in these kinds of scenarios (which are still pretty rare when considering the whole ecosystem) and still be very profitable while they improve their fraud detection methods, but instead they'd rather just collect their rent, do pretty much nothing, and let someone get screwed.

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