Interesting article, Jeff. I still don't know how much more protection I have if I write a check or send a 7-11 money order. Most of my friends I do "business" with can't take Visa. A postal money order does come with some protection, something to do with mail fraud. My Visa bank protects me if someone uses my card fraudulently, but I suppose if I authorize a withdrawl by PayPal, Visa probably won't get involved in anything to do with who PayPal sent the money to.

PayPal is still an excellent way for friends to exchange money. I get the money directly in my checking account the next day. But if you're buying something expensive from a stranger, it may be wise to not launder the transaction through PayPal.