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.

I took many cc payments over the phone in my shop, and the buyers collected them in person a week or 2 or 3 later, never had a problem.  Maybe one or other of the banks has a ruling on this (certainly not the ANZ or the NAB), BUT it is not LAW, maybe a banks Terms of Trading, but NOT federal or state law.