I'm not sure if many people aware of this vile PayPal policy. After 16 years, I finally got taken by a buyer and PayPal. To scam me was not the original intention of the buyer however.
I sent a Priority package to a buyer. I tracked the package after a couple days and it showed, UNDELIVERABLE as addressed. I asked the buyer about her address and she said, "Well you didn't have my apartment number on there." I explained to her that it was the address she had in eBay. She continued by saying she had left it off accidentally but ALWAYS received packages without it not being on there so its not her fault. (She only has 20 or so feedback in eBay)
She told me since she had left it off but thought she was not at fault, to just reimburse her the cost of the item and not the shipping. I wasn't ready to do that just yet, nor would I have as I made no mistake. She then escalated it by saying that if she didn't get the item or the refund, she'd open a dispute through eBay and PayPal.
I then called eBay. eBay told me simply that if the buyer did not have the correct address, I was protected, which is what I had thought. The next day she opened up a dispute through PayPal. 3 minutes later, PayPal closed it in her favor, WHILE I WAS RESPONDING TO THE DISPUTE!!
Apparently after PayPal and eBay parted ways, so have their policies. A PayPal agent told me that they side in case of a buyer anytime an item does not show delivered, FOR WHATEVER REASON. The only way a seller is protected IS IF IT SHOWS DELIVERED! They no longer use or research eBay's information.
So the buyer makes a mistake, and I am out my item and money at that point. She NEVER took responsibility of leaving her apartment number off her address and apparently doesn't care about me being out my funds and item. A total lowlife. My worst case in nearly 40,000 transactions.
PayPal has become more evil than eBay has ever been. I never had problems with them in the past. My last three "situations" with PayPal have been horrific for different reasons. And I thought my past issues with eBay were bad.