Ebay buyer reported Unautorised transaction after collecting the item. Paypal are chasing me :(

[jamesianwheeler]

on 6/2/18 I sold a collection only arcade machine on ebay, without consultation the buyer paid with paypal. They demanded to collect the item immediately which they did 9:30pm that night. upon arrival, the buyers partner haggled and I refunded 150GBP via paypal.

on 21/3/18 I find my account in negative balance of 769 GBP. the buyer only paid 700gbp!

Contacted paypal, they say the buyer made a claim with their bank whom took the money back from paypal. Unfortunately without any consultation with me, they took the funds from my paypal account. I called paypal and I explained that I had proof the buyer has the item and they are currently trying to sell it under a different username which Ebay had confirmed.

Paypal said they would sort this out as they can see the buyer has commited a fraud, 3 days later, the case is closed in the buyers favour and I am left without my item and now a nasty -769GBP in my paypal account which I have till 30/3/18 to resolve. 

why have paypal sided with the buyer after proof they have the item, why have paypal refunded pore than the buyer paid? Why will paypla not help me contact the bank ? Why has paypla passed the chargeback to me?

[kernowlass]

@jamesianwheeler

You should never use paypal for an item that is to be collected or personally delivered as you have 0 seller protection.

Your buyer can collect the item and then file a dispute for non receipt of item. As you would have no tracking number to prove delivery of the item to him then you would lose the dispute.

That is why Ebay give you the option of 'cash on collection' and you can state in your decription that that is the only payment you will accept. If a buyer pays with Paypal then you are allowed to refund that payment and re-state 'cash on collection'.

That way you have cash in hand / no wait / no fee / no risk of a dispute.

Also as your buyer filed a 'chargeback' then it was done via their credit card issues and that card company makes the decisions and not paypal

BUT you would not lose out if you had met ALL the criteria of seller protection.

BUT you negated that seller protection by allowing the item to be collected and accepting paypal.  

HOWEVER if you have proof of the collection and a paper trial of the refunds etc then you should go down the 'small claims court route' as you would probably win.