I have cancelled my Paypal account after identity theft in another item, a bank account where the stupid telephone teller sent checks and other personal info to the thief's house in another state, as well as my Paypal info.

It took a year to get things fixed and I still get problems with my credit.

Now I pay everything on Ebay with a USPS money order sent by registered mail. In a couple cases, where people refused to accept that, I had friends who agreed to do it pay by Paypal. I have twice used the USPS postal inspectors to get merchants to admit they cashed my MO and had to send the goods. I'm batting 100% this way.

I have friends at DoJ and they tell me bank and computer crime is easy in the US because the safeguards which European banks use are considered too costly by American banks, so they are quite willing to risk your credit rating and put the burden of proof on you to get things fixed.

In other words, you pay more and you get screwed. I'd rather have my flexibility limited and know that no one can take my cash.