I remember one time when i was newbie , i traded my bitcoin for skrill in localbitcoin but after some days my skrill get blocked with all the funds in it (i think). I never knew what was the reason for this and as paypal is also reversible payment gateway and forbid bitcoin related deals, they may also do same.
About chargebacks in paypal, i got scammed by some guy over facebook. I tried to buy bitcoin from him and sended him paypal in small block of 10$ but he even scammed me that 10$. And after 6 hour or something i placed chargeback stating digital goods is not as described and after few weeks i get that 10$ back, i think paypal don't get any clue this transaction was for bitcoin. And i think the one buying bitcoin with paypal in LBC can also do same if he is fraud.
Your situation is kinda reverse to what I was saying. PayPal didn't get a a clue that this transaction included Bitcoins, my concern is that the if the second party rejects the claim and PayPal investigates, they may ban both users.
I don`t think that ID verification can help all the time.The other guy can still chargeback with paypal.
ID verification is more like using the buyers personal info as a collateral to guarantee that there won`t be any
scam attemps and the deal will happen smoothly.
That`s just my opinion...
That's what I was thinking, that the ID is more of a deterrent than an actual insurance against chargebacks.
