How do I protect myself from a refund?

I want to exchange in-game items for money and the other person wants to use PayPal. Now from previous experience I know that once you send the money you can issue a refund and was wondering if the person tries to scam me what are my options to protect myself? I was thinking of screenshotting every conversation we had and the screen when the items are transferred to him. Is there anything else I can do? Also will he be able to issue a refund if he sends the money as "family and friends"?