Affiliate link gone. (Sorry against not an allowed practice here).
That being said Paypal is great. It does have it's issues and it's NOT regulated like a bank but with the millions using it bound to be horror stories.
Sad reality is this: If you want to do business online you essentially need a paypal account as it's still the most widely used / trusted medium available.
As Jason said there are other alternatives like Google Checkout and Moneybookers.
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