How safe is Paypal?

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Originally Posted by JohnDotCom

Problem is Buyers like to use it for the Safety & Convienience and most dont use cheaper PayChex or both.

You hit the problem dead on!
With all the scams and hustlers on the internet most people are afraid of getting ripped off. Happens all the time. Even on FleeBay using PayPal. But at least you have a fair amount of protection.
If you look at the highstreet business model, you are likely to spend money on rent, decorating, staff, advertising, creditcard fees, bank fees (loans and stuff). So at the end of the day, I think we all benefit.