The handling fee associated with canceling an order due to an incorrect address arises from PayPal's policy stipulating that all orders must be dispatched to the registered address on file. This policy is in place to safeguard both the buyer and seller, ensuring that goods reach their intended recipient securely. In instances where the customer's address is not updated or accurate, and the order consequently cannot be fulfilled, a handling fee will be applied. It is important to note that this fee is the responsibility of the customer, as it pertains to their obligation to maintain accurate and up-to-date information within their PayPal account. This approach serves to encourage customers to keep their details current, ultimately facilitating a smoother and more efficient purchasing experience for all parties involved.