While I respect and appreciate that PayPal has policies in place to protect its consumers from fraud, I believe it is, at the very least, misleading when it comes to its Seller Protection Policy.
I sold a phone on eBay and shipped the package with FedEx to the address on the transaction details page (as stated in the "Seller Protection Policy," packages are to be shipped to the address shown on the transaction details page, regardless of whether the address is confirmed or not).
Two weeks later (of course the package was delivered and long gone), PayPal withdrew the funds that were paid to me, stating that they had been informed the funds were fraudulent. They said I did not qualify for the Seller Protection Policy, but when I asked specifically why, several times, they kept telling me that the transaction details page showed I was ineligible. After reading through all the requirements of the Seller Protection Policy and meeting all of them, I was extremely frustrated.
Sick and tired of their runaround, I filed a complaint with the BBB. About a week later I got a letter back from them with a copy of PayPal's response. They had the nerve to say that I was ineligible for the Seller Protection Policy because I shipped to an unconfirmed address. I wonder why they could never tell me that. So the BBB could do nothing for me. I sent another letter to the BBB with a copy of the complete transaction and a copy of the user agreement. That was about a week ago, and I am still awaiting a response.
Until this incident I had no problems with them at all, but what they did to me was unfair. People need to know about this.
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