Here's my problem with Paypal:

I sell a fair amount of stuff on Ebay. 2 years ago I sold a Fender amp for around $250. I received the buyers money through Paypal and I dutifully shipped the amp. The buyer claimed that he had not recieved it a week after it was sent and complained to Paypal. Paypall took the selling amount out of my Paypal account (I hadn't transferred the money out of that account into my personal bank account). 2 days later the buyer emailed me and told me he had just received the amp. I reported that to PayPal, but they refused to do anything to give me the money. Even with me forwarding the buyer's email with him admiting he recieved the amp.

So I was out $250. I had a lawyer look into the issue and the contract I signed when I joined allowed them to basically do that. I could have sued, but what's the point.

They then labeled me as a risky merchant. Yet the refused to allow me to close my account.

If you use it, pull money out of the account ASAP. Maybe you'll be fine, but they are focused on protecting the consumer NOT the merchant. The simple fact that 80% of tranactions of that nature go through them shows they cannot be trusted. Espeically since they have such a hugely insestuous relationship with Ebay.

----------

By the way, I no longer allow anyone outside the U.S. and Canada to bid on my auction items - 20% over 3 years of selling would win and never send payment or want me to jump through hoops if they did. Less than 1% of buyers in the U.S. and Canada are like that according to my sales.