I sold an item on ebay and accepted payment by paypal. The payment was made promptly and paypal acknowledged receipt. I posted the item the following day by first class post obtaining a certificate of posting. I mistakenly thought that once payment had been received it was safe to release the goods. I had stipulated on my listing that postage was at buyers risk unless insurance was taken but the buyer choose not to take it.
Some days later the buyer contacted me to say she hadn't received the item. I replied that the item had been posted and I had a certificate of Posting which I would send her. This transaction took place over the Xmas holiday so I suggested she gave it another couple of days in case it had been delayed and if it had still not arrived,if she let me know I would send the certificate to her so she could take the matter up with the Post Office.
I did not hear further so I assumed that she had received it. Some weeks later I received a message saying that she had complained about non receipt to Paypal and was seeking a refund.
Paypal immediately froze my funds and, after following Paypals automated process,her money was refunded. Basically because I was unable to provide them with a tracking Number. Had she paid the insurance the item would have been sent recorded Delivery.
I feel let down by Paypal. There automated process is seriously flawed. No account was taken of the conditions I applied to the sale which were ,by bidding,accepted by the buyer.
I was lucky.The item was of low value so I learned a valuable lesson cheaply. It could have been hundreds of pounds, I have now learnt the following...
IF YOU ACCEPT PAYMENT BY PAYPAL, POST GOODS BY A TRACKABLE METHOD (RECORDED,REGISTERED ETC). CONDITIONS IMPOSED ON A LISTING MEAN LITTLE TO PAYPAL
I have not stopped using Paypal as it is a very convienient system,but I am now more careful and wary of it.