I generally like PayPal, but these allegations 
seem to be on target, IMO - if they're going to 
be a large funds clearinghouse, they need to 
start acting like a bank, and that includes 
insuring their users' transactions and mounting 
full investigations when there are allegations of 
fraud.

Still, they're the best online option for 
accepting credit card transactions, if you don't 
have a merchant account somewhere.  Here's hoping 
they don't have to raise their fees any more on 
account of this.