I have about 250 transactons (about 80% buyer / 20% seller). I have only had one problem.
Let's role play a hypothetical situation:
You win and auction. You receive an email from the seller with payment terms. You send the money via PayPal. This can take anywhere from a few hours to a few days, depending on how fast you and the seller both are.
Then, you never hear anything else. If you are halfway decent, you will probably wait a week until you realize the stuff hasn't shown up. Then, being the hypothetical nice guy, you send another email checking the status of your item. Several more days pass until you realize the answer you haven't received is the only answer you are going to get. Then, eBay will provide you with personal information they have on file (such as phone number, etc). This information is only available for the parties involved in the transaction and cannot be accessed by anyone else. So, you then try to call the seller. No answer. No voice mail.
So, then you FINALLY decide to try to do something through eBay. At this point, about 2 to 2 1/2 weeks have passed. Then you find out that you have to file sometype of request through them. There is no way around it. Once you do that, you have to wait 7-10 days from then before you can leave them negative feedback. Great. So you left a dirty, pissed off msg in the sellers feedback that he is a deadbeat and should be avoided. Now, how do you get your money back?????
Here is one thing most people don't know. eBay owns PayPal. eBay delays and delays the process with so many waiting periods that by the time you finally get around to trying to get your money back, guess what? PayPal tells you they can only 'assist' if less than 30 days have passed since the end of the transaction.
I had to go through my bank to request a credit. Since they didn't have anything to do with the transaction, they want all these affadavits and crap filled out.
When my bank credited me, PayPal shut my acount down and sent me a letter saying that the only way I could get it reactivated was to fax them copies of my bank statements. I told them to shove it up their ass.
250 transactions without a problem. The ONE that was a problem though was a MAJOR pain and left me really hacked off at how eBay and PayPal both leave you hanging and not only won't assist you, but screw you up even worse for trying to get your money back.
Oh, the one bad transaction was only for $25-30. I have sold $1200 guitars, $1000-1500 amps, etc without a problem.
Definately deal ONLY with people with established feedback. Check the auction terms twice for anything funky. I have seen $10 items sold for $5, but then they charge $12 flat shipping. Doesn't matter to where. If you are in the same state, or the next state over, you just paid $17 for a $10 item.