I write in response to an ebayer's advice that one should always use recorded delivery to send goods paid for with paypal, that this will protect us during chargeback dispute.
I wish that was true, the truth is NOTHING protects a seller from paypal chargeback. I sold a phone for 150 pounds on ebay, 2 months down the road, the buyer said he did not own a paypal account (or somethin like that). Paypal asked me all sorts of questions regarding my business and a proof of postage, I sent them a copy of Royal mail recorded delivery slip and a tracking number (which shows date of delivery) but this was not enough for paypal.
Paypal went ahead to reverse the payment, throwing my account into -ve, of course i refused to pay initially, Paypal went further to freeze my wife's paypal account with over 300 pounds housekeeping money in it.
In the end I had to pay the 150 pounds with some penalties before they reopened my wife's account. of course, we have both stopped using paypal and will advise anyone we know to think twice.
The best part of paypal is only when it works, God help you if you have any problems, you will be "helped" by different case worker each time you reply to their email, only that paypal caseworkers dont read your file, he/she will just give you a template answer exactly as the last case worker. you will be going round and round in circle.
In my own experience with paypal, the bad guys won ( the thief who took my phone and paypal who took my money to reward him again)