How often do reverse transactions happen? Is that a bad thing? What is a way the receiving end of the money can protect them selves from malicious buyers that are stealing.
Paypal tells you this each and everytime you receive a payment, how to protect yourself.
Depending on the amount you have to take different steps:
At least delivery confirmation ($0.75 USPS, cheaper if done online) or if UPS/FedEx a tracking#.
At most signature confirmation ($2.20 USPS, cheaper if done online) which comes with FedEx/UPS typically.
Reverse transactions (where PP takes the $ you have and gives it back to the buyer, basically a refund you didnt authorize) happen when, well, sh*t happens. Typically its when its a high price item, like computers, cameras and the like. If you have what PayPal requires for the item to protect yourself as a seller, youll be fine even if they file a claim. PP will ask for something to prove you did what you were required, and close the dispute.
Problems can arise when:
You get morons bidding on what they cant afford and will try to pull something.
You get hijacked accounts bidding and hoping you won't notice before eBay does, and ship the item anyway.
People notice you didn't protect yourself with delivery confirmation and will use it as a loophole to get a refund through PP.
Remember ebay is a company, yes, but it doesnt make the auctions, a community of users do. If you communicate and are a good person to your buyers/sellers, you can't go wrong.
A tip from a lesson learned when selling:
always try to sell your item worldwide (well, if its worth someone spending the $$$ to have it shipped to them), this puts it among the searches people run on ebay.ca, ebay.uk etc...and youll get more bids, maybe.
problem with international shipping is with PP of course. To protect yourself, you need a delivery confirmation. Well, international shipping doesnt have the $0.75 sticker and barcode.
So, when shipping intl, always use priority mail. The customs form you fill out has a tracking # you can use to prove it was shipped and received.
I sent something to someone in France 1st class, i know he got it. We emailed back and forth many times about the item and camera stuff in general. But, he used the lack of proof of receipt to basically steal $56 of mine using PP as his b*tch.