Went to the site. In reading the user agreement section, I found the following:

II. Responsibilities of Users
In order to become a User of PayPal you must register online. You must also read and agree to the terms and conditions of this agreement, including:

5. You agree not to engage in behavior that could reasonably be construed as providing yourself a cash advance from your credit card, and agree not to assist users who engage in behavior that could reasonably be construed as providing themselves a cash advance from their credit cards. Such behavior includes, but is not limited to, a User paying someone by charging a credit card, then receiving the funds back from the original Recipient and attempting to withdraw the funds from a PayPal account. Confinity reserves the right to reverse all such transactions and to terminate any accounts that are associated with such behavior.

It is apparant that they have served us notice they will be watching for this trick, and won't permit it. If we try it, we are in violation of our sign-on agreement (that is, no leg to stand on).