Comment by noduerme

To your horror stories, while I'm sure many of them do involve legitimate disputes, I stopped accepting PayPal payments about a decade ago after what they did to a friend of mine. He and his wife owned a small hotel that took payment several ways, including Paypal. They didn't have too many customers paying that way and had allowed something over $10,000 to pile up in their Paypal account over time. When they tried to withdraw it, Paypal froze their account and requested all sorts of additional verification. But even after they provided all this, Paypal refused to unfreeze the account. This dragged on for over a year. By the time they paid lawyers and brought legal proceedings, it was hardly worth it.

So, I'll use PayPal these days to pay someone with my credit card, but I'd be extremely cautious about receiving more than a small amount of money through them.