Is PayPal Safe for Buyers?

Getting Started
Shopping on eBay or other sites, you may see a link to pay with PayPal. This can be easily done by setting up a PayPal account. The process only takes a few minutes to enter your personal and bank or credit card information. PayPal requires that each new payment method be tested prior to use. For example, PayPal will send two small deposits to your bank account, such as 2 or 3 cents, and then you will be required to log in and verify the deposit amounts. Once this is done, you can use your account to pay for online purchases.
Fees
In addition to being able to pay for purchases on various online retail sites, PayPal users also can send money to friends and family. Online purchases are not assessed fees, but money transfers are based on the amount of money sent.
Security
PayPal has built-in security software to keep your banking information secure from hackers. Also, this form of online payment is secure because you deal only with PayPal and the seller never sees your banking information.
Precautions
If you are buying something on an auction site that you are nervous about, such as the authenticity of a designer purse, PayPal offers a protection for buyers. This feature, available to those using the payment service, allows buyers to file a claim if the item does not arrive or is not what was described. For example, if the listing says 'Authentic Coach Purse' and it's a fake, you can file a claim against the seller.
Using Buyer Protection
To use the buyer protection program, you can file a claim through PayPal's Resolution Center. This allows buyers to state what was wrong with the item or any other problems. A copy of this is sent to the seller and is also reviewed by PayPal staff. If the seller is found at fault, the buyer's money may receive a partial or full refund.
Quick Payments
Buyers can transfer money from their bank accounts into their PayPal accounts to help payments clear faster. Also, if you are using a bank account, adding a credit card as a backup can make the payment process smoother.