Posted by @justridiculous: I received an e-mail from PayPal this week stating that I can activate a feature that gives me 14 days to pay for an item. This gives me a chance to receive it and send it back if something doesn't work out. I've recently purchased a few watches from individuals online and thought this might be a good thing for larger purchases, so I activated the feature. Today, I bought a small item on eBay and the payment notification states, "We'll withdraw $50.00 USD from your bank in 14 days. If you want, you can also pay right now."
PayPal does, in fact, pay the seller. It's just a form of buyer protection. If there's an issue; the item is not as described, arrives damaged, et cetera, then I notify eBay and they step in. All of this, ideally, before the money leaves my bank account. The $50.00 is currently "pending" in my PayPal account.

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