I've had a PayPal premium account - or whatever ya call it to accept credit cards - for a couple of years now as my main payment option for my little Internet business. I usually leave a positive balance in there to pay for pieces-parts, supplies, and the odd eBay trinket, and I also have one of those PayPal "credit cards" (it's really more like an ATM card) which I find very handy. It works very well to keep the "hobby" income and expenses separated from the "real job" stuff in my house. I recently experienced the dreaded eBay BURN - funds sent, no goods delivered. This seller was clever enough to keep me hanging on with promises of impending shipment and delivery for several weeks - just long enough so that PayPal refused to mediate my complaint. Now both his e-mails are dead, he's no longer an eBay member, and I got nuttin'... Let me give you some of the details. I may sound like an idiot here, but from this I have formulated a new personal policy, and perhaps my experience and advice will benefit others. I won a speaker cabinet on eBay. The seller had around 250 feedbacks, with a 98% rating - I figured it was a pretty safe deal. I was so tickled to find an empty cab with the specs I wanted at such a good price, I e-mailed the seller and asked for another. Good communications followed, I ordered the second cab, and the following day I ordered two additonal boxes - four cabinets total, three different transactions. So, now we have three transactions... For which I have received no goods and the seller has disappearded. It's the same ol' story... The eBay transaction was paid for in part by the balance in my PayPal funds, and the rest by a bank transfer. PayPal sez (correctly) that my complaint was registered beyond the one month criteria they have to mediate claims, and offer no help. This money is NOT recoverable, so I'm just plain out the $$$. The second two transactions were paid by two different credit cards, but brokered through PayPal. Credit card company "CB" accepted my complaint by phone, and immediately credited back the amount of the claim to my account. Nice, no-hassle, no time limit, no worries so far - except that I got an e-mail from PayPal asking me to let THEM resolve the issue - which they have already said won't do. I'm putting my money - literally - on the credit card company in this one. Credit card company "MB" listened to my complaint, instructed me to fill out the form on the back of one of my statements and mail it to them. I did so weeks ago, and I have seen no activity on my credit card or PayPal accounts, nor any communication to indicate just what it is - if anything - they intend to do. So, what I am taking away from this experience - and recommending to you, dear reader - is that you do NOT use funds in your PayPal account, NOR allow them to pull funds from your bank account to pay for eBay auction items. From now on, for EVERY eBay item I purchase, I will first transfer any "positive" PayPal balance to my bank, and will have the fund source changed to credit card "CB." That way, I can still keep most of the conveniences of my PayPal account, but be far better protected from fraud. This is NOT a rant against PayPal. I am still a PayPal user, and a MOSTLY happy one. I will continue to use PayPal as my prefered method of accepting payments. It's more like one of those "A word to the wise..." posts.