BTW, the seller pays this, not you.You now have 180 days from the purchase date -- roughly six months -- to file a claim through paypal if you wisely used Goods & Services and not Friends & Family.
That little 2.9% + a .29 transaction fee is just cheap insurance guys! If you don't know who you're dealing with, do not consider them a friend.
Anything that I've sold, I figure on paying this cost when I price the item. It's not rocket surgery.