in this situation the seller is stuffed. Ebay insists you must take paypal but then you are not protected against the seller. I listed an item for $250 which was to large to post so I stated that the buyer had to pay cash on collection.

(I have in the past had a buyer pay by paypal when collecting an item and they just went home and filed a dispute and took back the money. You cant prove post when the item isnt posted.)

So the buyer paid $250 by paypal and then said they would collect the item. I refunded the payment and explained the situation. They then left me negative feedback and there is not a thing I could do about it.

Further if you have a shop and take a credit card payment over the phone the person is by law not allowed to collect the item in person. It opens the door to fraud. (anyone who decides to respond to this with an opinion please do your research first as that is not up for debate. It is the law) One must assume that by precedent the same must apply with Paypal by Australian law.....Not that either Ebay or Paypal care about Australian law.