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^ this
You request a refund through Steam.
You don't just take the money back via PayPal
Yes, of course because they didn't GET your money. What do you expect?
You did things the way that you SHOULD NOT do and it tells you in all the guidelines here.
Here's why it happened like it did.
You bought a game and went through Paypal to get your refund. So Valve would have initially had the money, but Paypal charged back. Under this situation, obviously Valve are going to remove the game - you haven't paid for it.
But here's the kicker, Paypal don't just take the equivalent amount back. There are CHARGES for chargebacks which Valve must pay - this is law in most regions. The vendor coughs up money every time something like this happens.
So your doing things wrong not only meant that Valve got no money from you (and rightly removed the game) but you COST them money too.
And that's why you're blocked from buying. Otherwise you could feasibly carry on doing the same and wrecking their business.
When you do a regular refund through Steam, you can choose where to send the money, either the originally used payment method (Paypal in this case) or Steam Wallet.
Reverse the chargeback.
You are still not getting it, you did not "request a refund".
You bought something from a store then you took the money back leaving them out of pocket.
That is not a refund.
Oh but they are.
The thing is, they CANNOT do anything. Their hands are tied over that money.
When you paid for it originally, Valve would have received the money from the transaction. When you requested to take the money back, Paypal requested it (and Valve are obliged to return it) as well as charging them the fees.
Valve's hands are then tied. Then can't just magically create a charge themselves or anything or go after it themselves. It doesn't work like that. Imagine if a company could simply gain access off their own back to your account or card?
So you've left Valve in an impossible situation - they're out of pocket, and they have no way of getting the money back unless you physically cough it up. But as the payment method has been stopped, you can't use that again.
That's why you don't do this.
ONly YOU can request Paypal do things, not Valve. So you must reverse that chargeback. If you can't you are stuck. So it's between you and Paypal to sort out. Not Valve.
You're welcome. Thanks for being understanding.
In general you should only use a chargeback when you absolutely cannot work things out with the vendor. And you should be prepared for that relationship to be over.
Steam isn't mad. You've just violated their user agreement, and cost them money, and that doesn't make you a very valuable customer. And without a wakeup call you might be prone to use chargebacks in the future further exasperating the situation for Steam. And really they've got no incentive to absorb that situation. Whatever people think, they're usually not so valuable that a business benefits from them despite chargebacks.