Say that Joe sells an item on ebay, get funds sent to his Paypal and put on hold, like usual, to wait for item delivery/buyer response. Joe takes the item to the P.O, gets delivery confirmation and insurance for it, and mails it off. He then realizes that he put the wrong name and street address, but still the right city, state, and - most importantly- zip code. Joe shrugs and figures it'll just come back and he'll send it back again correctly, so he gets back to his computer and puts the tracking number in for Paypal/the buyer to monitor. The tracking system only says the city, state, and zipcode of the shipment's locations, so when the item gets there, Paypal and the buyer see it as delivered. The buyer spends a few days trying to figure out just where the heck the item is, Paypal releases the funds to the seller, and then the buyer files an "item not received", but is denied, because- clearly- the item arrived at its destination, according to tracking. Call it an urban legend- I chuckled at it, and now I'm merely posing it to you all to see what validity/fallibility you find in it.