jonathanleger - 2:45 am on Nov 6, 2012 (gmt 0)

Here's what my PayPal rep said:

That is correct the price matching (refund) will be done by PayPal not the vendor. As far as fraud comes the buyer needs to submit a form at www.paypal.com/holiday and also provide extra information: Sales receipt , printed advertising, lower advertised price, date, advertised store name etc.. all forms will be reviewed and approved so this will help with any fraudulent request. Just keep in mind that this will be PayPal’s responsibility the merchant receives a payment as he does today and all payments are reviewed as they are today.