[quote name='io']The way I understand the PayPal Seller Protection, is that if you ship to a confirmed address you are covered no matter what the buyer says. Now, if they start going off about rocks in the box, etc, who knows. But it is *supposed* to cover you. I had one case where on some stupid cheap game a guy filed a dispute. I never got the details but it sounds like his account and/or credit card was stolen or something. Anyway, the address was confirmed, though, so I got my money back (after it was temporarily removed). And this was a case where it looked like the account was used fraudulently.[/QUOTE]
The Seller Protection only cover chargebacks; it does not cover the "Item not as described" disputes initiated by the buyer. These are two totally different things.
The "Item not as described" dispute is often used by buyers to legitimatley claim a refund in the case that they received the wrong item or was siginificantly different from what they bidded on; of course, this system has been abused by thieves to make false claims and get away with the money and item. This is why buyers can potentially claim that they received a PS3 box with some rocks inside it and win the dispute.
Check the Paypal board on ebay and you'll find plenty of complaints by sellers concerning this loophole.
[quote name='dracula']oh it isnt that big of a deal, you get your money out of paypal as soon as physically possible, and then you are covered, there is no way you are going to get screwed out of your money. You may have to abandon that ebay account if someone does try to screw you, you just dont use that paypal account any more and make another ebay account. Problem solved.[/QUOTE]
Too bad Paypal will forceably take the money out of your account. Your account balance will then be negative. If you don't put in sufficient funds to cover the negative balance, they can and will send it to a collection agency in which you will be liable for.
Funny, I'm browsing three of my favorite forums and they have at least one thread in which I have to inform people about Paypal's policies and how they really work. LOL!