I bought something in Italy in July and paid from my UK Paypal account (linked to a UK bank account). Everything went smoothly. About US$1500.
I later saw that they had ALSO taken payment from my US Paypal account. This is linked to a US bank account that at that time had very little funds in. It went into unauthorised overdraft, so I've so far incurred over US$140 in charges, AND standing orders like my Vonage account have been refused and hence cancelled.
I've now written three times to Paypal to get something done about this. The first two times they ignored it, the third time they mentioned perhaps crediting my UK bank account - nothing has actually happened. They have so far ignored my request to restore my US account to the state it was in.
I checked with the seller, who seemed totally honest, that they have only received payment once.
This is now over two months ago and I have got nowhere. They seem to be a nebulous organisation, a will 'o the wisp, that is impossible to pursue. I think I've lost around US$1700.
This is my first such experience, but I've heard of other people having big problems with fraud on Paypal. I had previously assumed it was fraud by others by using Paypal, but it now appears to be fraud BY Paypal themselves. Either that or reckless incompetence.
Be VERY careful with this organisation.