This the one ? - 

https://community.ebay.com.au/t5/Selling/PayPal-to-provide-buyer-protection-for-eligible-PickUp-and-...

I havent seen that and cant recall seeing it anywhere else either. 

I just go on whats on the Paypal transaction detail.

- Ship to buyers address on this page.

- Use a shipping service with signature confirmation

- Save all tracking information or other proof of shipment.

Which has nothing to do with a pick-up item

Just wanted to clarify as a post above does not give details as to what is covered - Paypal still do not offer buyer protection for pick up items claimed as not received.

S10.2 Any item you collect in person or arrange to be collected on your behalf is not eligible to be claimed as not received.

For goods that have been picked up and a claimed as signficantly not as described - the odds are more in a sellers favour as they have been accepted by the buyer on collection.  That being said, for example, if something is sold in good mechanical working order and it packs up the next day, the buyer may be able to win a claim, though providing they returned goods to a disgrunteld seller, may on occassion be tricky.

Credit card chargebacks on pick up items are different, as Paypal must abide by the lawful terms of a bank's credit card transaction.

Sorry, I thought the OP said the buyer paid with Paypal and picked the item up.

The OP is the one with the problem not the buyer.

If the buyer paid with paypal what would have been written on the Paypal reciept?

Take photos of her Facebook pages. A good chance they will come in handy. Also report her to ACORN. They will follow up. I did it with a buyer who received a refund and kept my item after sending back a totally different item after claiming not as described. ACORN lodged a notice with the West Aust police.

I live locally to the OP's local Police Station & had an issue with a scam buyer some 2 years back & the local police were most singularly unhelpful & very derogatory with regards to online selling! My scammer was from another more rural suburb & (I quote)  "known to them" but I still lost over $900 for a collectable doll.

They just aren't good @ helping with online fraud! No amount of paperwork will help if the OP is dealing with them!

The OP has a B&M shop (I've been there) I don't know what to suggest; But the local Police aren't the answer!

Redders, the local police don't deal with on-line fraud.  That's why there's ACORN.

It's specifically for on-line fraud.  They deal with it.

https://www.acorn.gov.au/