Posted By:
DRFor this reason and several others, leaving funds in a Paypal account is risky. NEVER leave funds in a Paypal account (besides the fact the money market fund balance is uninsured)! I am curious if Paypal has the power to take funds from a linked bank account or credit card. Is this even legal or possible?
My favorite payment method for large transactions is an e-check. For a $5 max fee, one can accept an unlimited amount. It is transfered directly from a checking account so a chargeback is not an option. Paypal could likely claim fraud on this type of transaction but credit card fraud is much more prevalent.
Shipping with signature confirmation (online delivery confirmation including a signature) for transactions over $250 - $400 is VERY important. This would prevent most chargebacks. However, anything is possible with eBay. One day (hopefully soon), the DOJ or states AGs are going to have a field day w/ eBay.
http://www.paypalsucks.com (horror stories)