The information below is an exerpt from PayPal's Security Center website.
Protection for Your Purchases
We have developed several programs to protect your payments in the unlikely event something goes wrong.
How it works.
All PayPal transactions are covered with 100% protection against unauthorized payments sent from your account.
Qualified transactions are also covered by PayPal's Buyer Complaint Policy. See eligibility
PayPal Buyer Protection covers eBay transactions paid with PayPal up to $200.00 USD. Qualified transactions are covered up to $2,000.00 USD. See eligibility
100% protection against unauthorized payments sent from your account.
As a PayPal user, you’re protected from any payment that you did not authorize.
As a fraud-prevention measure, we will send an email confirmation for every online payment that you make with PayPal.
If you receive email confirmation of a transaction that you did not approve, contact us and we will work with you to quickly resolve the issue. You will not be responsible for the charges.
Purchase protection programs.
When you purchase goods online with PayPal, your transactions are covered by our Buyer Complaint Policy. If we find the complaint in your favor, the amount of the payment, if available from the seller, will be transferred back to your account. See eligibility