I have been hearing thru the grapevine that there is some concern about PayPal much of what I have heard I was not able to publish. But there are several things on the wires that you should be aware of. Which I will get to in a minute but one thing I like to tell people is to remember PayPal is not a bank and you should be very careful in keeping any sums in your PayPal account.
I have a separate account at my bank that I do all of my on-line activities through. This allows me to use the highly protected banking system to transfer money from my regular account to the account used for on-line transactions thus my regular account is not at the mercy of some hacker. Also I have begun using a new service by a real bank it is called C2it by Citibank
Anyway back to the PayPal issue apparently they have some serious customer service woes [PcWorld] along with that it appears that the one company you do not want to piss off, they have and they have lost there Better Business Bureau approval because PayPal had a backlog of more than 100,000 unanswered complaints. [TechTV]
To help you out there are a large number of Internet escrow services that offer guarantees against being scammed by untrustworthy sellers. Escrow.com and Tradenable.com are just two of them. Also, some auction websites, like eBay and Yahoo! Auctions, offer fraud protection, insurance, and escrow services on their sites. eBay even provides its own payment system called eBay Payments. Which is fully guaranteed.