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HankronSelling internationally, PayPal is a great convenience, as someone from France or Britan can send $$ the day of the auction. I have yet to have a reverse charge, which is not to say it won't happen.
My recommendation has been, and still is, to add 20 or 25 cents to your shipping/handlings cost to cover any future mishap. If you feel the need to have specific requirements for someone to use PayPal (minimum or maximum price, confirmed address, tracking) use it.
To me, you should pay for quality. eBay sellers who charge pennies for shipping and handling and don't take into consideration their costs come across poorly. It says that they don't have confidence in themselves, their products or services. When someone charges $1 to ship a 11x14" vintage photograph, it raises more questions than it answers. If a seller sells quality and authentic stuff, does a good job packaging and communicates well I am more than happy to cover their charges and efforts. If one of these sellers says, "I charge $7 because I'm a great seller and am worth it. If you want to get 37 cents of service, bid somewhere else" I buy from this person and don't look for the guy who charges 37 cents.
In short, if you are a good seller and realize you have to raise your shipping 25 cents as a form of insurance: charge it! I can promise you that if Scott Gaynor raises his shipping price 25 cents, I won't be switching to Dr. Bonds because his shipping rates are so reasonable.