As a seller, I'm not willing to risk losing anything over $40 to a potentially bogus PayPal claim and require tracked shipping as part of my auction terms. $40 may be chump change to a Powerseller, but it isn't to me and I'm not willing to assume the risk. If a buyer doesn't like it, too bad.
As a buyer, I factor shipping costs into my bid, so in the end, it doesn't cost me any extra. If my max amount is $50 and shipping is $13, then I'll bid $37. If the shipping cost is $3, then I'll bid $47. In the end, I don't mind paying the extra, as long as I receive the service. It's when I pay $6 for shipping and receive it on a $.98 stamp in a PWE that I take issue.
The bottom line is, as per PayPal rules, it's the sellers responsibility to get the card to the buyer, not to the border, therefore, I must disagree with your proposed compromise.
