Paypal allows scamming and fraud purchases using their services and its the honest seller that pays the price.
I sold a Rolex on Ebay in April for extra cash cause my wife was expecting our first daughter. They guy used Paypal for the purchase, I get paid, I mail the watch.
One month later, I get an email about a negative balance of 3,000 on my account. What happended was the buyer of my watch stole a paypal user account (my guess through some phishing scam) and used it to transact through their service. Paypal gives all the money back to the guy who had his account stolen, ofcourse Paypal is not going to take responsibility for fraud that goes on with their service, so I am the one that gets stuck for 3 grand, and I am out my watch.
I wouldn't recomment Paypal to my worst enemy, and I would HIGHLY recommend anyone using their site to READ the Terms and conditions. If you want to take them to court, you have to either fly to California or Nebraska (or some place). They are crooks that allow people to be scammed and take no responsibility for it.
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