PAYPAL, EBAY's right hand for finance, is a decent system.  It is well run, and strives for accuracy.  Of the available methods of paying for items purchased on EBAY, it is the most secure and offers the most protection.  It protects, not only the seller; but, also the buyer.  It provides a place where EITHER can have a grievance resolved against the other.  The fee for these services is quite small, considering what it would cost for anyone else to do the same thing.  Additionally, PAYPAL handles the complex and difficult situation of international currency exchange.  If you, in the US, purchase an item in Great Britain, you make your payment IN US DOLLARS to EBAY, who converts it into British Pounds Sterling and makes the payment.  The same applies for persons in Germany, purchasing from US sellers.  They pay in EURO's which are converted by PAYPAL in to US DOLLARS, free of charge.  The most current exchange rates are always used, and there is NO additional fee for this service.  In addition, sellers can use PAYPAL to make their shipping arrangements through USPS and/or UPS, and will realize a savings in shipping costs by doing so.

PAYPAL also permits buyers to use their major credit cards to make purchases that they would not; otherwise, be able to make.  Most small sellers do not have credit card services; and, therefore; cannot offer that method of payment except through PAYPAL.  This benefit, is also an Achilles heel!  Dishonest purchasers can use this service to buy items, and then after they have been shipped, can do chargebacks on their credit card, and the seller is then left without payment for merchandise already in the hands of the buyer.  Honest people call this fraud and theft. PAYPAL deducts the chargeback directly from the buyers account when it happens; therefore, the money is gone by the time the seller realizes that a chargeback has occurred.  This is, I suppose, the Caveat Emptor of using this, or any other such service.

All-in-all, I highly recommend using PAYPAL to handle your financial transactions with EBAY.  It's far safer and more secure than anything else out there.