What postage method did you use? Paypal's own documentation (below) clearly states that as long as you have a copy of the lodgement receipt which includes the recipient's address, you are covered by their Seller Protection. You do not require proof of delivery (in Australia, at least) so if Paypal have rejected your claim, ring them and ask to speak with a supervisor and quote their own terms and conditions to them, and if you still get fobbed off, come back here and we'll tell you how you can have that decision overturned by the FOS.
