I remember about 2 years ago I had success selling these Andy Warhol Campbell's Tomato Soup cans.
I was buying the 4 packs for $2.00 and selling them for $50.00.
I had an eBay buyer want to buy 6 four packs from me. I cut them a $50 break and charged $250.
I carefully packed everything up, shipped them, and made sure the I had a tracking number.
Next thing you know, I get an email from the buyer saying the cans were completely destroyed. I tried to work with the buyer, but they wanted a full refund. I reminded them that they had declined the optional insurance and that I stated in the auction my return policy.
All of a sudden I have a negative feedback and a claim with PayPal.
I too had a problem getting anywhere with them. No one gives you their last name. They are always Tom J. or Kelly M. It is nearly impossible to keep an acurate track of who you talk to.
I provided them proof of everything. I included emails between the buyer and I, tracking number, etc.
They finally revearsed the payment based on the fact that in the auction I didn't state I was selling damaged cans. The buyers claim was I had sold them something other than what the auction was for.
At this point I waged a personal war with PayPal. I ended up all the way up the ladder to the 'Escalation' department.
They had told me that the buyer had proof that I sent damaged cans instead of good cans. I asked them to provide me this proof and they said they could only do this if with a court order.
After I made my case over the phone with a real live person, they gave me suggestions on how I could get my money back by suing the buyer or buy filing fraud with my local police department.
They basically said that just in case they made a mistake that here are the ways I can continue and they were done with it.
The only thing they did do was force the buyer to send them back to me before they would refund the money. The buyer shipped them in the same exact box I shipped to them. The box was in great condition which again led me to question how these things could get that damaged.
Even after all that, I still ue PayPal. When it comes down to it I just think they are easier. I have the PayPal debit card so I don't have to wait for a check or the funds to transfer to my account.
Here are some tips to deal with PayPal.
1) ALWAYS GET DELIVERY CONFIRMATION. If you do not have a tracking number, all it takes is for a dishonest buyer to file a claim saying they did not get their goods. If you do not have a tracking number then PayPal automatically revearses the funds. This has happened to me too. It only costs $0.55 to add the delivery confirmation through USPS. Just include it with the shipping costs.
2) SHIP WITHIN 7 DAYS OF THE TRANSACTION AND HAVE PROOF. Again, if someone claims they did not receive the item and you have no proof you shipped within 7 days of the transaction date, they will revearse the funds.
3) On higher priced goods, make insurance mandatory. In this case if something is damaged, they have to go through the carrier and file a claim.
Even though I have had problems in the past with PayPal, I still use them. I just make sure I cover my tracks.
To sum things up: PayPal = Judge, Jury, and Executioner.