did seler send item bofere colected the money. This is starting point of my "flawed"  ( I like this, it is a new word for me, thank you ) logic.

I doubt it.

It is irrelevant, however. If a seller can prove postage then the buyer is at the mercy of Paypal. In Australia.

Please read what is written. Your scenario is unlikely. It does happen, but it is not the norm. I suspect the OP is not ingenuous enough to have fallen for that trap.

So your logic is still flawed.

If BUYER use the PAPAL to paying the items he/she is very, very secure. Not at mercy. PAPAL gwaranted returning money if parcel is lost in transit or seller is conman. I say IF. 

Ok I ccapted your point of valued my logic. No problem. And thank you so much to exchange your point of view with me and others. 

kindly regards

Henry

Paypal DO NOT guarantee anything. If the seller can prove postage to Paypal's satisfaction, then the buyer relies on the Paypal's goodwill.