I would suggest that you read your service agreement with the paypal again, just to get an idea of what type of protection you are entitled to, where you were defrauded. Most of the time, if you use credit card to make a payment, especially the credit cards with some well-known financial institutions, you are permitted to dispute the payment within certain period of time. I myself never carefully read my paypal agreement. But I believe that they provide similar service. Otherwise, how could they be competitive? What you should futher inquire about is whether paypal will return the money to your credit card provider where a transaction is disputed? Since you used your credit card to pay the major amount of price, at least before they resolve this case, you do not need to worry that this charge shows on your monthly credit card bill.