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If these were forum transactions, how did Paypal re-imburse him for non-receipt? I was under the impression Paypal buyer protection is only for eBay transactions; otherwise how does Paypal know the terms of teh transaction?
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Paypal buyer protection does cover non-eBay transactions. The only way the buyer has zero coverage is if the money is sent thorugh one of the "personal" options.
Plus, Paypal has little choice if a credit card chargeback is filed.