Quoted from pinlink:
What about the seller's protection though?
What if I sell a game to someone and they pay me via Credit card through paypal. They get the game, then issue a chargeback? I'm asking because I am actually going through this right now with a buyer and I am nervous about him paying with CC through paypal then issuing a chargeback.
Paypal is slanted for buyer protection. They believe whatever baloney the buyer makes up. This is why cash on the glass is king.... unless you know the person. It's one of the reasons Ebay went downhill IMO as well, whatever lies the buyer makes up, ebay and paypal believe, and the seller is left with no merch or money.
It even happens to businesses, John's Jukes in Canada was brokering sales for the "time travel warehouse" (see story on rec.games.pinball) and someone bought a robotron, issued a chargeback and got to keep the machine and their money. John got nothing, even with him paying the CC fees. Expensive lesson for sure.
Another seller had a picture of the buyers loading the machine into their vehicle, with the license plate clearly shown, they were supposed to pay cash but had some cockamamie story about the ATM being out of cash, over the daily limits, etc. so they did the transaction right there on their phone, seller took pics and everything.... yup, chargeback. He sent the pictures in and PP didn't care a whit who was loading what when.
Cash isn't always king either, sometimes there's counterfeit bills in there! Ugh.