Quoted from fosaisu:By "they" you mean PayPal, right? As I understand it PayPal is required to refund the CC company regardless of whether there's money in Kevin's account, and then PayPal has to try and recover from him. But assuming there's still money in the PayPal account, each chargeback is deducted (along with a $20 fee, apparently).
At least that was what I was told when I hit my brick wall with PP.