eBay Approved Third-Party Checkout

[bmike]

Hi,

When using a third-party checkout system, and the buyer completes payment through whatever method, does it auto-update on eBay that the item was paid for? Or do you have to manually change it to "payment received" ? Also, which checkout do you suggest?

Also, to the buyers that are tentative with paying using a third-party checkout, can I tell them that they are covered under eBay Buyer Protection? Or is this not so?
I asked eBay but I get different answers each time...

Thanks!