Structurally Paypal is not bad (few services channel funds in such a global way) but their fees for receiving funds is 2.5% of amount. Withdrawl of anything < 150 is again a %. Painful.

Also eBay's guarantee of insurance for not delivered goods is some what of a scam. Took me 4 weeks and constant battle with "work-from-home" paypal employees eating cereal in a Canadian kitchen to get half of my funds back. Finally complained to my CC company and they toasted PP's behind by reversing full amount under the category "fraudulent charge to customer" 

Caveat emptor has a new meaning now days.