Very true. If you sell something and it gets lost in the mail or not delivered, (no fault of the seller) and the buyer files a claim, the funds for the amount the buyer paid for the item and the amount he or she paid for shipping will be automatically deducted from your account and if the funds are not in your account if will be deducted from any bank account you have linked to your papal account. Quite unfortuante, being as how the seller is the one who pays the fees to paypal for accepting money thru them. I am actually quite surprised that there has not been a class action lawsuit filed about this already. Perhaps it is in the works.. the only way I see to protect yourself against this is either to not offer Paypal on your auctions (or anything you sell) or if your buyer does not pay for insurance, the seller buys insurance in case paypal pulls your funds..
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