I sold a laptop on ebay to a guy for about $400. I went through paypal for payment and he was verified so I didn't see any problems with it. I had it shipped via UPS with a tracking number, it was delivered and signed for, everything was hunky-dory.
Three weeks later I received an email that the transaction had been reversed, and Paypal took the $400. Luckily I had immediately moved the money to my checking account, so it was my paypal account that was in the red $400. When I called to talk to paypal they told me virtually nothing, just that it was most likely a stolen credit card. They started sending me emails, calling saying that I owed the money, I repeatedly asked them to send me some sort of verification via certified mail that the transaction had actually been reversed and why, just a basic case file really. They never did.
They called for a few months and then they must've sold my account to a collections agency cause they started calling about once a day for a year or so. I actually talked to a couple of the collection agents and explained what had happened and they thought it was fishy and they would have their supervisor called. Noone ever did so I never paid.
That's the basics, it really was quite the pain in the butt, and I'm done with paypal because of this. Most likely most people won't have problems, but unfortunately I did, so I always tell folks to use every extra caution that they can.
allison.