When you use paypal you don't file a separate dispute with the credit card company, Paypal does that on your behalf.

The credit card company will deal with paypal. Paypal will get a statement from the seller, and the credit card company will reveiw it.

It takes a LONG time. We had a dispute against us once, the package label got ruined and the package was returned to us. The buyers wife filed a complaint with paypal less than 5 business days after the sale. They received their package within 2 weeks of the sale, the man who bought the item called paypal and the credit card company and said the complaint was a mistake, but it was STILL not settled for 3 months.

So expect it to take some time once the formal complaint is filed.