I also agree with Phil and would like to add that these fees from PayPal are very minimal compared to a MERCHANT ACCOUNT.

MERCHANT ACCOUNTS vs. PAYPAL:In order to accept credit card payments over the internet, you MUST HAVE a merchant account. In order to have a merchant account, you must be a licensed business. Then, because you are a business, (and Im using our company as an example) they charged us a minimum monthly fee of $37- for our merchant account to handle credit card transactions (in our case the account was with Card Services International, but WFB about the same amt.) Then, there is a fee for every electronically generated transaction. This fee goes to the company handling your secured internet gateway, (in our case this was Linkpoint, who is now out of business BTW.) On top of that, every time someone makes a credit card charge, a percentage of your sale goes to the credit card companies: (anywhere from 3% to 6% of the total sale) to Visa, MC, AX, etc.

I do understand your concerns, but as Phil said, their precautions are for YOUR security, and the fees really are minimal. There was a HUGE litigation between PayPal and the banks. The banks were furious that PayPal was able to conduct business without having to deal with all the bureaucratic nonsense that banks have to deal with. This lowers PayPals operating cost, hence the ability to charge lower fees, which consequently takes a BIG CHUNK of busine$$ away from the banks. PayPal won the lawsuit for one simple reason, THEY ARE NOT A BANK! The entire concept of PayPal is to electronically generate funds instantly, without having any actual exchange of paper or legal tender. Take it from someone who has dealt with, and been reamed by merchant account banking, PayPal is a beautiful thing!

Sorry that this is a bit lengthy. I just thought it might give those who are Anti-PayPal, a little bit different perspective.

Cheers! Pam