Of course it is up to Sony to accommodate PayPal and how it works into their tos. As you say a bank reversing charges, even by mistake, is not uncommon so Sony should be aware of this. Obviously it's not all Sony's fault and yes they should of put a temporary restriction on the account untill it was sorted out. But the issue is they have just permanently banned the account without allowing any way of knowing why or helping the customer rectify whatever has gone wrong. This issue is 100% Sony's fault, and the story of them being stupidly unhelpful in these situations has been noted quite a few times on gaf. There is no defense for this and consumer law urgently needs updating to in this area to protect us.
No, the problem is PP fault.
Banks chargeback is different from PP.
These ==> means waiting for confirmation from both parties.
Clicking Buy Now==>Your Money(Bank Account)==>Feds==>Sony Account
This is PP route: Clicking Buy Now==>PP==>ACH: Your Bank==>PP==>Feds==>Sony Account
Now with suspicious activity:
Bank==>Feds=(Y/N Suspicious)=>Sony. If Y, then no transaction, and you get declined from even trying to give money to Sony. If N, please complete transaction.
If Y, and completed transaction, Bank/You will dispute the change on request, and Sony will look at their record to confirm it with the Bank reporting on your behalf.
If it is unauthorized, bank/Sony don't care.
Now if the Bank/Sony confirmed that you did it, and you signed/said that you didn't do it, well you were breaking the law and claimed false chargebacks.
Sony will act on this if they believe you were trying to cheat the system.
This is PP for suspicious activity:
...PP==>Feds==>Sony. Transaction is completed from You to Sony, or is it?
Now PP will later deem your transaction as fraud. (I will be removing Feds since they are involved with everything)
PP will dispute the transaction, and confirming that your transaction shouldn't have happened, and now Sony==>PP due to fraud request based on the ToS contract that PP requires all company to sign if they want to use PP.
For refund, PP==>Your Account. Nice and simple right?
This dispute process is a different transaction. This isn't your money in the first place, it has always been PP money that was exchanging hands between Sony/PP, and theirs contractual agreement. You aren't important unless PP deems it is important for them to act on your behalf.
Sony got screwed over by PP ToS since you received the benefit without paying Sony.
Your transaction history will be recorded for your bad "behavior" of filing false chargebacks.
PP didn't lose anything, and simply just gave your money back.
You can resolve it with PP for them to give it back to Sony, but Sony won't remember that THIS WAS YOUR MONEY/ORIGINAL INTENTION...because once again, your money was never involved in the first place. You think PP even cares if you've requested them to pay Sony? Their ToS is solid, PP is protected.
Your Sony account is now marked, and was already marked.
At least with the bank, you/bank/Sony have the chance to confirm each other request to avoid the situation of claiming that you are a cheater.