I use PayPal for eBay sales and purchases and love its convenience. I
wish it was used by more people. For example, when I'm short of cash it
would be convenient to PayPal the woman who cleans our house.

Like Jeff, I use a dedicated bank account to fund my PayPal account and
keep a small balance in it. The back-up funding is a canceled credit card.

Sure, there are horror stories about PayPal. There are also eBay horror
stories (Harold?). If an eBay seller has a 99% positive feedback most
buyers will proceed without worry. What do you suppose PayPal's
feedback would be if there were such a thing? I'd guess better than
99.9% If you would trust a 99% eBay seller with a couple of hundred
dollars, why wouldn't you trust the 99.9% PayPal with the same amount?

Bob