I recently sold an item on eBay, for which the buyer paid by Paypal (the item was collection only). The buyer then started an item not received dispute. eBay found in favour of the buyer stating that "This case has been decided in the buyer's favour", the reason given was because I did not provide tracking information.
WHY ACCEPT PAYPAL?
I asked eBay why it is mandatory to include a Paypal address on the listing when the item is for cash on collection only. All this does is cause confusion and also create problems for both buyers and seller. Surely it would make more sense to suppress the Paypal option for items that are cash on collection only. eBay advised that "To ensure security on the eBay marketplace, it is now mandatory for all listings to offer PayPal as a payment method.the Paypal option must be included"
CASH IS KING
If you are selling items that is being collected I would strongly urge you to accept cash on collection only. Payments via cash are an acceptable payment method when the item is being collected. You as a seller are guaranteed to receive your money (and keep it!) and buyers can view and test the item before buying so the transaction is safer for all parties.
Remember: The only person that is going to protect you is yourself. Any other mechanism for seller protection usually offer very little protection or is unreliable.
Thank you for reading my guide. I hope that you have found it useful. Feedback / comments are always welcome.