It's unfortunate that none of the stuff tested in the UK get thrown out and all their bad ideas come to the rest of the world soon after. I wonder if anyone understands why I have this avatar it means that one day ebay will ruin its site so much it's not worth it to sell there.
I still think adding in as many requirements for gaypal payment as possible is good. Here's some stuff: no po box, no apos, domestic only and no US territories, confirmed address, verified paypal account, confirmed paypal address must match ebay address exactly, must sign for package, must print out and fax/mail you a statement saying you agree to the auction listing's terms (which might help if they make a dispute well you have them actually signing your terms), and those are all I've come up with now. The last one sounds really good as it is sure to annoy people -- and as long as ebay allows it and you say "it's to protect from fraudulent paypal disputes" then it's good.
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