I have used paypal to both send and receive money.
i have never (touch wood) had a problem with buyers or sellers using this service, and i have a verified business account due to the fact that i have accumilated over £4500 worth of sales through paypal.
although i havent had a problem with paypal. as it seems fairly (and i use this term loosely) bullet resistant (not proof).
now if you want to register a credit card, you have to verify it with a legit phone number and the ccv number from the back. a verified address can be gained from the billed parties address.
I have (however) had extreme problems with billpoint anyone remember them ? used to be ebay's own payment scheme, which had flawed security holes, therefore allowing little ****s from indonesia to use stolen credit card numbers to buy premium goods from someone like me and then selling them on. i lost £360 on that one.
but no trouble with paypal. the majority occasions i will bump the price up slightly to account for the 3.5 %