Paypal payment who is liable for non receipt of goods

usignuolo

I recently purchased an item on a UK commercial website and paid using Paypal. (At the time the seller also had a shop on Ebay which had 100% positive feedback. ) I got an immediate automated acknowledgement that the item was on its way. After 10 days nothing had arrived. I emailed three times but although it did not bounce, there was no response. Their answerphone is permanently on and they do not call back. Their Ebay shop is no longer registered. Their last feedback on Ebay was 4 days after I placed my order. I therefore fear the worst, that they went out of business immediately after taking my order.

The shop's website is still up and running - and appears to be live although I imagine they are not delivering anything. What happens if you are running an online shop and taking payments via Paypal but not delivering? I have raised a dispute with Paypal but their dispute procedure states that they only act as the intermediary with the seller and will only reimbuse you if the seller has money in their Paypal account. My Paypal account is linked to my Barclaycard. Should I take this up with Barclaycard direct rather than going through a Paypal dispute.