PayPal is definitely a good, safe payment system when buying over the Internet - it's my preferred option, as it protects me (from chargebacks etc) and the customer (if the goods don't show up).
Not specific to this issue, but here's a few tips to help protect members when paying for goods online:
- Don't use the 'friends and family' option as you'll have no recourse if the goods don't appear.
- Remember the 180 day deadline from date of purchase - after this you won't be able to make a claim.
- Keep a copy of all communication and invoices etc, as PayPal will want to see these in the event of a claim.
I hope this at least helps someone out there.