It is recommended to use PayPal Goods and Services when paying for an item. There are no buyer protections when sending PayPal Friends and Family, Zelle, Google Pay, Venmo, CashApp, Crypto, among others.
I've tested a few labels before and they sit in the recess of the chip. I accidentally included one of them in some chips that I sold. The buyer contacted me and thought the chip was a reject from the factory it looked so good.