I am not sure if this is where I wanted to post this but I have seen many blogs regarding PAYPAL protection.
May of last year I sold a $600 Best Buy gift card to a first time buyer. (Bad mistake) After contimplating the sale, I decided to sell to the member even though it was their first time. Payment was made through PAYPAL, insured and item was received. However, when item was received member stated that the item was "tampered" with and contents were missing. After many emails I explained that since the item was "insured" they needed to file am insurance claim. It was obvious that they signed for the item, receipt indicated such plus I had a deliver confirmation. It all looked favorable until ultimately PAYPAL refunded their $$ and froze my PAYPAL account. Now I owe them $$. Wha I found to be exceptionally weird is that the member worked for the same company, Best Buy, and knew how this operation worked. The gift card does not expire, however it remains on on their main frame for 2 years. I receive dit as a gift, must have misplaced it and later I found it and sold it on Ebay. I made sure the amount was accurate. Everything was fine. My mistake was sending the original register receipt along with the item which had the gift card # printed on it. I had no way of tracing the use of the gift card. I had proof that it made it to it's destination but yet I was found at fault. After months of disputing this claim, again, I received a charge back and the member received their $$ back. I was HONEST yet it back fired on me. This person KNEW exactly what to say and do after I told him that I sent all original documents with the item. He had plenty of time to figure out what he was going to say and do when he filed his claim. Especially when he worked for the same company, I guess that would be easy. He repeatedly told me how I could trace the gift card using the gift card # 's but he knew before getting the card that I had sent him everthing knowing a trace would be impossible. I do remember the receipt stating the item was purchased using cash. CC or check would have been easier to trace the transaction but not cash. No matter what I said or did made no difference to PAYPAL. I sent PAYPAL and Ebay all the transaction details, emails, IM, ect. Again, I was suspended and still owe. But get this: 6 months later I was able to locate the person who had given me the card and they had a receipt indicating the gift card #'s. (Evidently what I thought was an original receipt was a duplicate). It wasn't hard after having the card # to trace the activity and sure enough the member had indeed received and used the card and what is more crazy is that since he worked for the store he used it using his employee ID. You'd think that would benefit me but since the appropriate time had elapsed, I wasn't able to do anything. I also know that this person filed a credit card dispute w/their cc company and was reimbursed, also filed an insurance claim and received payment for that as well. How can they do that? Ebay nor Paypal could help me a this point and I am more cautious these days. Why would anyone sign for an item that clearly looked as though it had been rifled through? The post office usally notices these things and flags it appropriately. Something was suspicious and following your gut instinct is best. I am hoping this situation helps someone else. It is always best to ask questions to Ebay and Paypal first in a situation like this. Normally I would decline someone with less than 5 feedbacks but first time users need a break too. We all started out the same way.