[STRML]

This is the most classic bitcoin scam - buy with paypal, then claim you didn't receive the item. The seller has no way of proving that you did, and Paypal will rule on the buyer's side every single time.

This is why trading channels like #bitcoinotc discourage any use of paypal - but for times where you have to use it, there's the trust system.

[danneu]

Gee, if it's really so foolproof then all of these comments (and OP's lamentation) seem to be missing the point.

Clearly there is a free lunch, and it's buying Bitcoin on Ebay.

http://www.ebay.com/sch/i.html?_nkw=bitcoin

Look at all that free money.

I mean, for the small price of feeling like a twat, a small transaction fee, and locking up a couple hundred bucks for a month... you get a Bitcoin. So why aren't these listings being sponged up by a few people that don't mind the twat factor?

[pakitan]

I don't think it's just the "twat" factor. You can only do so many "I haven't received the goods, refund my money" before you accumulate such a horrendous feedback that nobody will do business with you again. In addition there is a chance your paypal/ebay accounts can get shut down.

[michaelt]

You exchange positive feedback before you send the refund request. And sellers can't leave negative feedback any more.

With that said, your ebay account might get shut down after this happens more than a handful of times. Better pick up some spare accounts from a botnet operator.

[nullc]

More info on the #bitcoin-otc advice on paypal: http://wiki.bitcoin-otc.com/wiki/Using_bitcoin-otc#Notes_on_...