I use this all the time.
Yes, Paypal pays the seller right away & deducts the money from your payment source 14 days later. The seller never knows if a buyer uses this & you can use it anywhere including Ebay.
You need to get approved for this- but it's easy enough.
They periodically raise the limits for people- I bought a Bal jacket using Pay After delivery & it was $1400. so they do fund even higher priced items.
I love it..
Is there a fee to use this source?