The PayPal Protection plan covers eBay sellers as well as buyers. As a seller, you have some protection against unwarranted claims made on your eBay sales; it’s called (logically enough) seller protection.
To see whether your transaction is covered under seller protection, follow these steps:
In your payment received e-mail from PayPal, click the View the Details of the Transaction link.
Sign into your PayPal account.
Scroll down the Transaction Details page to the buyer’s shipping address.
You’ll see whether the shipping address is confirmed. (PayPal confirms the address by making sure that the credit card billing address matches the shipping address.) If it is, you must ship to that address to be protected.
When your transaction is protected, should any fraud be involved (a stolen credit card or identity hoax), you will not lose the money. PayPal guarantees the transaction.
If you receive a PayPal payment that ships to an unconfirmed address, drop the buyer a note and ask about the address. Usually you’ll get a reply that makes you feel comfortable, and you’ll ship. Remember that you will not be covered under seller protection if you ship to an unconfirmed address.
Surprise! There are a few other rules and restrictions. For sellers to be protected, they must do the following:
Have a verified Business or Premier account: You must have an upper-level PayPal account to be covered.
Ship to a confirmed address: You must ship to the buyer’s address exactly as displayed on the transaction details page.
Ship within seven days: The item must leave your place of business within seven days of receiving payment. In the case of a pre-sale or customized item, you must post delivery time in your listing.
Accept single payment from a single account: You must have accepted one payment from one PayPal account to pay for the purchase. (No multiple-account payments for an item.)
Ship tangible goods: Seller protection is not available for services, digital goods, and other electronically delivered items.
Provide proof of shipping: You need to provide reasonable proof-of-shipment that can be tracked online. The transaction details page must show that you shipped to the buyer’s address. A delivery confirmation suffices for items valued up to $250.
For items worth $250.00 or more (£150.00 or more for the U.K.), you must have a signature from the recipient as proof of receipt.
Not impose surcharges: Imposing a surcharge on the buyer is against eBay policy anyway.
Cooperate with the complaint investigation: If a complaint is filed, you must provide complete information about the transaction within seven days of a request from PayPal.
Seller protection is presently available only for U.S. and Canadian sellers transacting with U.S. buyers, and for U.K. sellers transacting with U.K. or U.S. buyers. Check back with the PayPal site for any changes in this policy.
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Source:http://www.dummies.com/how-to/content/what-does-paypals-seller-protection-cover.html
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