A big problem with casual selling on ebay is you don't know what you don't know until you've already been screwed. I sold some iTunes gift cards and provided the redemption code from the card after I received payment. We both left positive feedback for each other (he already had 18 feedback).

A month or so later, the buyer put a chargeback on their credit card, got their money back from paypal, and I had no recourse. Worse still, Paypal charged ME $50 more because of the chargeback! Despite my sending them the code (which they requested, and through ebays messaging system), I had to have delivery confirmation from a shipper to prove I sent it. Even though they have the messages proving the delivery/receipt, too bad for me. I tried calling paypal, and that got nowhere. They said something like "sorry, it will cost $200 to investigate the chargeback further, so it's probably not worth it". I told them I'd write it off to my not understanding their policy on "seller protection", but at least do something about the scammers account. Of course they said they couldn't, nor could the refund any of the fees.

So now I'm out the $30 for my item, $50 more because paypal incurred a chargeback, plus ebay fees, plus the guy got positive feedback and went on to do this to other people! Totally incredulous.

Instead of blogging about it though, I've decided to build a company to compete with ebay. Wish me luck =)