You are viewing the PayPal Community Archives. This content may be old or outdated. Leave the Archive
Did you bother to actually read the small section on seller protection in paypals user agreement?
Its not a 100% coverall or an insurance policy so you need to read it and risk assess your transactions.
Paypal covers you for false claims of non receipt of item if you provide a tracking number that shows online delivery of the item to the buyer.
However if you choose to just send with proof of postage or the item is lost in the post then of course its up to you to refund the buyer.
If you paid for something and did not receive it would you not want your money back?
Proof of postage is just that, proof you posted it but if the buyer does not receive it then you refund them and sort it with the postage carrier with any insurance you took out when you sent it to reimburse yourself.