Yep, they are explicitly not banks or traditional financial institutions and therefore have none of the standard protections. They don't only lack the protections of credit cards, but also of banks in general.
There are countless stories of people losing access to over $10k in their PayPal account with no option to appeal because PayPal decided their Twitch revenue looked too much like money laundering. Or because a single transaction involved a card later reported stolen. Or... just because. Some people aren't even given a reason.
Ed's got another banger: https://www.wheresyoured.at/make-fun-of-them/
What's extra fun is that HN found it: https://news.ycombinator.com/item?id=44424456
There's at least one (if not two if you handle the HN response separately) good threads that could be made from this. Don't have the time personally at the moment.
I will say that I'm shocked to see some reasonable shit in the HN comments, people saying the post is too long or not an acceptable tone are getting told off rather respectably with some good explanations (effectively: this was written this way intentionally you dolt). Broken clock and all that, I guess.