Yes. It is. However, out of hundreds of times using PayPal, it only happened to me once. I was sending something to Canada (only worth about $40), and after 13 days the buyer filed a dispute with PayPal. I had already sent the item. I had 3 days with PayPal to prove that I had sent the item or the money would go back to the buyer. Unfortunately, I had sent it air mail with no tracking number, and my post office was using an old system so I had not an ounce of evidence. Of course, I argued with PayPal that a buyer needs to wait a little longer than 2 weeks before disputing when shipping international. If I had shipped Global Priority or Express, I would have probably been in the clear. I'm sure the buyer got the item, and I never heard from them again.
Do the following and you should be OK:
- Save copies of your communication with the buyer
- If you're shipping, insist on shipping a method that will provide detailed tracking and proof of delivery. Make sure the buyer has to sign for the item.
- Use insurance.
- Have photos of your item and package
- Save all receipts