PayPal has made a good move to extend protection to buyers of other online stores, besides eBay. However, this is a limited protection which only covers purchases that were not received. Other protections that are offered to eBay buyers like goods received that are not as described, goods that are damaged in transit or incomplete goods, are not covered.
When a dispute is raised for goods not received, the same way that a claim is made by eBay buyers, it is up to the Seller, in this case the online store, to show proof of posting, delivery and receipt. If there is no concrete proof, it's highly likely that PayPal upholds the Buyer's claims and initiate a full refund including shipping, packaging and/or handling from Seller's PayPal account.
Even if there are no funds in Seller's PayPal account, PayPal has the right to access funds from Seller's bank account that is linked to PayPal.
When a dispute is raised for goods not received, the same way that a claim is made by eBay buyers, it is up to the Seller, in this case the online store, to show proof of posting, delivery and receipt. If there is no concrete proof, it's highly likely that PayPal upholds the Buyer's claims and initiate a full refund including shipping, packaging and/or handling from Seller's PayPal account.
Even if there are no funds in Seller's PayPal account, PayPal has the right to access funds from Seller's bank account that is linked to PayPal.
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