Even though I have not personally had problems with Paypal, I know some people have. The thing I do like about Paypal is they allow me to pay via credit card without giving my credit card information to umpteen online retailers -- only Paypal knows it, and so far, they have never abused that privilege.
I can believe Probus' ebay experience re. the stolen goods. When everything goes well, they are fine, but they are very inflexible when something goes awry. I had an experience myself on the selling side. I'd been selling for years, 100% positive feedback, and received a "Top-Rated Seller" badge based on my buyer's ratings of my performance and my sales tallies. One day out of the blue, I received an email from Ebay indicating that my seller account would be limited to 10 listings (or $500 in sales) per month. Somehow they had "determined" that my account was "associated" with some deadbeat seller's account, someone they'd already kicked off ebay. However, I could never determine how they linked my account with this person's as I had no idea who they were! This happened after I moved to a new address, though, so all I could figure is that maybe a deadbeat seller had previously lived at my new address, since it was an apartment, although an upscale one, so I was surprised.
I could get no answers from ebay as to why this happened and no way to clear up THEIR error. Fortunately, I was only a few months away from moving to Belize and didn't have much left to list, so I just complied with the seller limits they placed on my account, but it was entirely bogus and caused me to lose my "top-rated seller" status since I didn't have enough sales.
Oh well, all water under the bridge now as I wouldn't be selling on ebay from here anyway. I am not boycotting them for buying, though, as the deals can be amazing, and you can get one of a kind things you just can't find elsewhere.
Emily