Here's a tip: Don't use PayPal unless you absolutely have to. PayPal has taken to treating its customers as badly as many large banks.
Many credit card companies are very proactive about fraudulent purchases online, and I even had Discover call me when they noticed a series of small purchases on iTunes. It turned out it wasn't exactly fraud (my 5yo on a home computer I hadn't signed out), but I was able to cut it off and I'm sure they saved me a bundle of money.
I've had experiences dealing with fraud from both PayPal and Bank of America recently. BoA were easy to get on the phone and refunded my money instantly. PayPal won't let you speak to a human, and after a week or so of going back and forth determined that it was acceptable for me to be overcharged for an item as long as I got the correct item in the mail.
Using a real credit card (not debit) gets you a great deal of protection and is a better option than ever using PayPal.
Really? I've spoken to humans at PayPal many times. When I call, I don't even have to navigate a phone tree or wait on hold, someone just answers. The people I talked to were helpful and knowledgeable about their service and handling problems (which is what I called about, some weird customer that sent a bunch of <10-cent payments to my account then disputed them, and more recently with a question about the new IRS 1099-K form).
It wasn't hard to find the number to call either. You log in, click on Contact Us, then Call Us. Two clicks and you have a phone number.
Would it be fair to say that if both sides of the transaction are trusted then Paypal is OK? I would say that most of the time I use Paypal this is the case.
No, not even close. PayPal makes every transaction involve three parties, and PayPal imposes themselves even when unwanted by either buyer or seller. Notably, look up the various cases where people used PayPal for a charity or fundraiser, and PayPal cut off payments and stole the funds because they didn't quite grasp the concept of money changing hands without a product getting shipped.
Many credit card companies are very proactive about fraudulent purchases online, and I even had Discover call me when they noticed a series of small purchases on iTunes. It turned out it wasn't exactly fraud (my 5yo on a home computer I hadn't signed out), but I was able to cut it off and I'm sure they saved me a bundle of money.