Paypals protection policy is quite good. I sent some goods to a guy in the UK recently, all seemed normal until he contacted me to say he did not receive the goods. He said that the parcel I sent was empty, but I had the postage receipt that included the weight of the goods that proved I had sent them.

I will never know whether he was trying it on, the Post Office thought he was and would not pay up on the insurance I tried to get for him, claiming that he signed for them, but he said the signature was forged.

So then he reversed his credit card payment that I received via Paypal.

Paypal dealt with it realy swiftly, I just sent them the postage records and they covered it, which was good. It did not take long either, I was pleased how they handled it.

That was lucky that it was to be sent to a confirmed address, I suppose over Christmas it is more likely somene will ask you to send to a different address for gift purposes. I would not send anything worth over about £25, I will only send to confirmed addresses usng a protected service like Paypal, as I did in the past lose quite a bit sending a parcel to an Indonesian unconfirmed address, usually people like to give a gift in person, not have it directly delivered, so hopefully it will not come up too much.