Sold my Canon DSLR to a guy in Ohio via sending him my paypal email. I got a confirmation email, shipped the camera, and it has been delivered. Still no money even marked as on hold in my paypal, and I've responded to the confirmation with the tracking number as instructed.
If there is no transaction in your PayPal account then this was an obvious scam. The email was NOT from PayPal. You did not verify the real email address of the sender. You did not verify any possible transactions in your PayPal account on your computer.
Since there is no PayPal transction, then it's not PayPal's problem.
Advertising an electronic camera for sale is like inviting a scam. You need to become a PayPal expert if you want to take such selling risks.
