I think a comparision between PayPal and a credit card transaction is not very fair. In a credit card transaction you have the entire bank system with all its security and legal back up behind you, both as a merchant and a customer. And you pay for it. PayPal is no more sophisticated than handling cash between individuals. Easy, cheap and fast, but with the obvious risk of the other party being less honest than you are. No safety net is provided, but you don't pay for one either. Both systems have their pros and cons, and averyone should be aware of them before making their choice.