using paypal for ANYTHING is just bad news. unfortunately, i currently sell on ebay and it is currently my best option.
if i had a choice, i wouldn't use visa/mastercard/paypal. it seems like their business model is to get big, destroy competition (or limit it to an oligopoly), and then charge exorbitant rates.
when i sell something on ebay, i have to subtract the 15% that goes to ebay to calculate whether it's even worth selling at all. that is a ridiculous fee to charge considering what they provide, and that # is only going to get higher and higher.
I am using Craigslist and ebay classifides (Free) and am having great success. I eventually sell everything I list with no comebacks.
I do sell autos on ebay motors at which site sellers are allowed to specify things like wire transfers, which is the only way that I will accept payment other than cash in hand.
My $.02.
