I don�t believe ethel�s claim that you have to refund within 7/8 days is correct.
As a seller you do have to post goods within 7 days to qualify for coverage under the
Seller Protection Programme. See point 3.d.1. There�s lots of other conditions as well. This also says (point 3.e) that as a seller, if there is a dispute, you have to provide any documentary evidence within 7 days of Paypal asking for it.
The way I read this is that although you have no obligation to despatch within 7 days, if you don�t, you�ll lose Seller protection.
Under the
Buyer Complaint Procedure, section 8 has the obvious �buyer must prove delivery�.
The
Buyer Protection Policy has, under point 4.a.1, the requirement that the buyer wait at least a week after the (claimed) posting date before submitting a claim. This section also says that the buyer must first file a dispute using the PayPal Online Dispute Resolution process, before the dispute can become a claim.
There doesn�t seem to be anything in the actual
Paypal user agreement about any 7 day limits.