Money was received in checking account, item was NOT received.
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I can only say how the dispute process works.
IF the buyer opens a dispute for non receipt of item (and escalates it to a claim), then paypal wlll want a tracking number from you that proves delivery of the item to the buyer.
If not then you have to refund the buyer. If you have no funds in your paypal account balance then paypal can't dip into your bank account without your authorisation.
So what they do is refund the buyer under their buyer protection scheme and then put your account into negative and limit it until you pay them back again. If you don't pay them back they "sell" your debt to a recovery firm to collect.
Why not just refund the buyer and then claim from your postal courier with your tracking number??
Advice is voluntary.
Kudos / Solution appreciated.

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