I think I am about to find out just how good PayPal is. I bid and paid for an item for close to $200 on E-bay and the seller sent the UPS order out through Paypal. The next day I recieved a note from UPS & Paypal that the Billing invoice was cancelled by seller. At this point I don't know what is going on, but I think the seller might be ripping me off. I have written a note to seller, this see what he has to say if anything. If I don't hear back I hope you guys can give me some advice on how to make a claim.
To make a claim, call 1-866-643-3720. My single experience with it was that it was surprisingly easy. However, be patient. The seller could merely have made a mistake on the first.
I had a similar thing happen to me just two weeks ago. It seems that the seller realised he was getting ripped off by paypal to go through them and that he could ship it for less himself. I received the item. No problems. I'd be interested in what the seller says though.