Add a middle layer between your bank and paypal.
Once you sync your bank account, Paypal can claw funds from your account for any reason it deems necessary.
Do not give them this access into your business's main operating account. Bite the bullet and open a separate, standalone DDA with another bank (not the same bank, that won't achieve its intended effect).
And don't give them a SEPA mandate at all; there's a small link on the "add bank account" page that bypasses the SDD mandate while still allowing use of the IBAN for withdrawals.
Or, better yet... don't use PayPal at all. I closed my account years ago and don't regret it one bit.
In Britain, I think PayPal uses a direct debit, so it's easy to reverse any transaction.
This is the technically correct term used with US-based vanilla bank accounts that are FDIC insured
I went thru the hassle of opening a new account with a new institution just for this. We may still close paypal after all (which is what i'd love to do in the first place)