They've confirmed with us that they have better fraud protection methods in place and this won't be a problem. If they are defrauded they won't pass it on to TradeHill.
Of course Dwolla told us this as well but Paxum has been in business a lot longer, done a lot more volume and faced a lot more fraud in the past and remained strong.
From what I can tell they've been in business about 3 months longer than Dwolla - Dwolla launched December 1st 2010 and I can't find any reference to Paxum older than September 2010 (their
Alexa stats seem to pretty much confirm this). The company registration and website registration date to 2007 but they haven't been doing anything during that time that I can spot.