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If you file Item Not Received, some unscrupulous sellers can provide fake tracking number sending a 'package' or 'something' to a street address nearby. PayPal is set up to check only city, state, zip with the shipping carrier or maybe the shipping carrier is only set up to provide city, state, zip and/or country to PayPal to confirm delivery so you can possibly lose such a dispute on the first go around. Then you'll have to appeal with official documentation from the shipping carrier and if necessary a law enforcement or an ic3.gov report, even a mail fraud report from the postmaster.
If you paid with credit card, you may dispute through card issuer if PayPal dispute falls through.
More info about disputes:
PayPal has a return shipping refund program (please register your account before filing dispute in order for your return to be eligible):
https://www.paypal.com/webapps/mpp/refunded-returns
Kudos & Solved are greatly appreciated. 🙂
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